Toronto Condo Market Forecast 2018 - Should You Buy a Condo Soon?
The Toronto Housing market has been marred by severe housing shortages and high prices. However, prospective for condominium buyers is on the rise with sales under $500K picking up. With the new rules in place, buyers can now access lower mortgages. The bigger question however remains; should you invest in a Toronto Condo?
According to the Canadian Economic Forecast, Canada is set for a 3.7% economic growth, which usually translates into better sales for the real estate industry. Both new and old condos will be in high demand during spring once the buyers have saved up their down payments and are ready to make purchases.
With millennial purchases on the rise, it is expected that there will be upward pressure on the prices. However, a majority of these potential buyers are looking to exit the rental market, and are therefore saving up for purchases in spring. The Toronto Housing report for October 2017 stated that Condo prices are going up 24.5% every year, so fear of being left on the sidelines is real.
Investors are also circling mainly due to the high demand for student housing in Toronto. The high rental potential is an excellent pull-factor for a majority of these investors who are assured of making value for their money.
Why are Toronto Condos a Jackpot?
The severe shortage of detached houses and townhouses has shifted attention to condominiums. Also, the proximity to work, leisure, shopping, and restaurants is an added advantage for condo owners. Additional commuter struggles and high gas prices are pushing homeowners towards the city near their jobs to reduce expenses.
According to the table shown above, Toronto Central and Toronto West are great for investments, considering the proximity to college where off-campus housing is in high demand. Many students are looking for long term accomodation, that easily allow access to school and other amenities. With the prices only rising by the day, it is just reasonable that investors are looking to get a piece of the pie.
The following table from the Toronto Real Estate Board shows promising returns for anyone willing to invest in condos. The market exhibits a high potential for growth and therefore promises high potential profits for all investors.
Barry Fenton, President & CEO of Lanterra Developments suggested that Toronto Condo prices may have risen by 40% given the shortage in detached houses. Also, foreign investors trying to escape economic troubles in their respective nations or who have kids that want to study in Toronto are now turning to the Toronto Condo market.
Should You Buy a Condo Soon?
While it may be impossible to give a perfect forecast of the Toronto Condo Market in 2018, it is evident that the market is currently on a growth phase with promising returns for buyers, sellers and investors in Toronto. The economy is strong, and the prices are set to continue upward. In case you are looking to invest in a condo, the Toronto Condo Market is the place to be.