Toronto’s real estate market had its ups and downs in 2018. Despite this, the city’s condo market has thrived. Not only have condo sales and prices remained steady, but also they’ve boosted both Toronto and all of Canada’s overall real estate market.
For the past three years, condo sales and prices have increased in Toronto. A big reason for this is the new conditions imposed on home buyers in the past year which have made it harder to purchase a home. Tighter mortgage qualification rules, rising prices, and higher interest rates have all moved buyers away from homes and looking towards condos.
Demand for condos continued to increase in 2018, however, the vacancy rate was low. Prices also continued to rise throughout the year. New construction condo prices went up by 12% and resale condos were up 7.5%.
Experts are saying that Toronto’s booming condo market will moderate in 2019 though. Senior VP of Urbanation, Shaun Hildebrand, said: “We’re entering right now, the beginning of what will be a record run of condo completions so that’s going to help slow down price growth and rents.” He predicts that prices will continue to climb during the first half of 2019, but fall once supply increases. A number of new condo developments will be completed this year. This stabilization will shift Toronto from its current seller’s market to one that favors buyers a bit more.
These new condos will also help slow down the rising rent in the city. Toronto has been facing a major affordability crisis recently, with rents rising to unsustainable levels the past year.
Entry-level priced condos under $800,000 continue to be the most popular, although buyers are excited about the new family-sized units that will be available soon. Some experts are concerned about the rate at which the city is growing though. The increased number of condos and families living in them will stretch Toronto’s services such as schools, parks, recreation centers, public transit, and health care.
Overall, the new condo developments will benefit the city. Condos will become more available, prices will become affordable, and Toronto’s economy will boom. Looking for a place to live? Contact me today!