I often get asked “So, what do you think about the Toronto condo market? Are we in a bubble? Is there going to be a crash soon?”
Torontonians see the number of developments going up and worry that there is too much supply. The key thing to remember here is the amount of demand to live in Toronto these days.
The average Toronto condo price in 2015 was $407,991, up 4.4% from 2014 (according to TorontoMLS sales). Toronto is a growing city, gaining more and more international presence. As the population increases, so does the housing demand.
On top of that, young buyers today generally prefer a more urban lifestyle where they can enjoy the vibrancy of the city and use public transit rather than sitting in the GTA’s infamous traffic. Because of this, neighbourhoods that were rough around the edges are now up-and-coming and gentrified. Areas our parents never would have thought to live in are becoming increasingly pricey as they become increasingly trendy.
The number of young professionals and young families living in condos is also significantly increasing. We’re used to living in smaller spaces, and happy to sacrifice size for location and lifestyle. With the growing demand, sellers are doing very well on their investments while first-time buyers are having a hard time breaking into the market. Condos give these first-time buyers an opportunity to start their own investment in real estate.
“First-time buyers account for approximately half of all buyers in the GTA and even more so in the City of Toronto. Condominium apartments represent an important entry point into home ownership for a lot of households. This is a key reason why we experienced continued growth in sales for this home type over the past year,” said Jason Mercer, TREB’s Director of Market Analysis.