The condo market in Toronto continues to thrive in the face of consistently rising prices and falling sales numbers. In fact, the drop in sales reflects a declining number of condos on the market for purchase, which creates a gap between supply and demand and lends itself to the trend of rising prices in the market.
Despite this, however, condos continue to be a first choice for new homebuyers, especially among young people. With many bringing in multiple offers and closing at over asking prices, it is an excellent time to be a condo owner in the market. Those looking to move out of their condos into a bigger home are also opting to keep their condo as an investment property, renting out the space in a rental market which is notoriously tight.
One major concern that prospective condo buyers are facing is the chance that a condo purchased during a pre-sale may not ever get to the building stages. After high-profile project cancellations due to rising development costs earlier in 2018, many prospective buyers fear the potential of putting money down on a home that is said to be developed over the course of 12-24 months, and never seeing the results of that investment. However, the condo market in Toronto continues to thrive despite these cancellations – it was found that at the end of the first quarter of 2018, a record number of condos (61,337) were currently under construction, adding confidence to the idea that the market is healthy and booming.
If you’re thinking about getting into the condo market in Toronto, now might be the time to do so, with prices predicted to begin to decline in existing condos. Alternatively, if you’re ready to upsize from your current condo, know that the market is hot and these spaces are in high demand, creating a space where selling might be the right choice for you.