If there was ever a time to take the dive into the Toronto condo market, it might be this year.
While the continuing pandemic of 2020 drove down the demand (and subsequently the selling price) for city condos temporarily, it won’t be like that for long, as units in Ontario’s biggest city have historically always been hot. If you’ve been sitting on a decision whether to buy a prime unit, it’s a good time to do it.
As an experienced Toronto, Ontario, real estate agent and broker specializing in condos, Michelle Kam says while the condo market cooled off a bit late last year, it will start to grow again in 2021 — although slowly. That means if you buy into a condo right now, your investment is poised to only trend upwards as the recovery strengthens.
Buying in the Heart of the City
Recent reports suggest that the median price for a Toronto condo could rise as little as half a percentage point this year. But taking a closer look at the condo market, we can see that the price increase is being driven primarily by units in the 905.
Condos in the 416 are expected to start rebounding in the second half of the year, as the pandemic is predicted to be under control and the government will return to its immigration goals. Tack onto this that universities in Toronto will throw open their doors full-time again. This suggests there will be more demand for rental units in and around the downtown area. Many younger professionals that have been living (and saving) at home temporarily might want to take advantage of the market at this time.
This is in contrast to detached homes, which despite the challenges continued to rise sharply in sales volume last year — almost 20% in the heart of the city. That means if you’re looking to experience the bustle of Toronto life, a condo may be the only affordable option available right now, says Michelle Kam.
If the relatively stable condo prices are not enough to convince you, consider the historically low mortgage interest rates (of under 1% in some cases) that could be a recipe for condo ownership that didn’t exist last year for many.
Michelle Kam Looks at Historical Trends
If there’s one thing we know from looking at the past, it’s that if Toronto real estate faces a hurdle, it doesn’t last long, says real estate broker Michelle Kam. In order to see what might happen during a recovery in the 2021 condo market and beyond, we can look backwards to what was happening in previous years.
During the summer of 2020, condo sales in the city actually increased almost 10% from the same month (August) as the year previous. The average selling price for condos also peaked during that month.
But looking at the trends of Toronto condo prices since 2000, we can see a dramatic upwards curve. The average prices have almost doubled in the past five years or so alone and were under $200,000 at the beginning of the new millennium.
Time will tell what happens next, but Toronto real estate broker Michelle Kam says it’s an ideal time to seriously consider buying a downtown condo with the help of an experienced Toronto realtor. And if history is any indicator, it could pay off in the long run.