Real estate in Toronto had a rocky 2018, but while detached homes had their ups and downs condo sales remained strong throughout the year. In fact, Toronto’s condo sales boosted not just Toronto’s real estate market all year, but also all of Canada’s.
Condo sales and prices have been increasing in Toronto for the past three years. Certain conditions imposed in the past year have made it increasingly harder to purchase a home, such as tighter mortgage qualification rules and higher interest rates. This has driven up the demand for condos in the city.
While condos became the obvious choice for those unable to obtain a home, that became increasingly harder as 2018 progressed. The average price of condos increased and the vacancy was low. New construction condo prices were up 12 per cent year over year in November to $768,602 and resale condos were averaging $595,678, which was a 7.5 per cent increase.
Now experts are saying that there are signs that Toronto’s condo market will moderate in 2019. Senior Vice-President 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 a bit in the first half of the year, but fall once supply increases as new condo projects are completed. Overall, experts are saying that a more balanced market is a good thing for buyers. Toronto is currently a seller’s market and has been for a while, but now things are beginning to shift to favor buyers.
Condos selling at entry-level price ranges under $800,000 continue to be hot. Character buildings are also popular among buyers.
In addition to shifting balancing the market, these newly completed condos will also help slow down climbing rent in the city. Toronto has been facing an affordability crisis for a while as rents have been rising to unsustainable amounts.
While these new condo projects in the city will help alleviate some pressure, the city is reaching its max. The increased number of condos and families living in them will stretch the city’s services such as health care, schools, parks, and recreation centers.
Overall, the new condo developments will benefit Toronto’s real estate. Lack of availability and affordable real estate has been a pressing concern in the city for the past few years. Hildebrand stated that “there is a lot of pent-up demand that is certainly accumulating”, and now it appears it will begin to be met.