WARNING! Do NOT buy Toronto condos in 2018.
Unless, you want to make money on a great investment, that is. I’m always so surprised at how many consumers think condos are not a good buy, unless you’re desperate for a place to live. And that is so not factual.
The 4th quarter results for Toronto Condos market for 2017 have just been released and here is an executive summary of the numbers:
*Sales were down by 15%…and please note that 2016 was the highest selling year in TREB’s history, so those numbers would be hard to keep pace with, never mind to beat.
*New Listings were up by 10%….we SOOO need the inventory as freehold SUPPLY is still DISMAL in the city
*Total inventory has increased by 44% but the market is still far from swollen with supply.
*and here’s the kicker! AVERAGE CONDO SALE PRICES SOARED BY 18% !!
GTA average price for a condo is $516K, BUT in the city, where most sales take place, they cost almost $550K and even higher in the downtown core.
*Average days on market did not change…it still takes 23 days on market (and only because the status certificate takes time for the lawyers to review…without that, the pace would be insane).
1 Because the general VACANCY RATE in the city is UNDER 1%.
2 Toronto condos average Rental sale prices rose by 11% for a one bed condo and by 9% for a 2 bed condo
3 Condo VACANCY rates are at a steep LOW of .7%.
4 35% of the condo inventory is currently rented out but much more is needed for the number of people who need a place to live. As the new stress tests make their mark, it will be young first timers who might have to sit on the sidelines as they will have to likely earn an additional 20% in income in order to purchase the condo they were considering in December 2017.
DID YOU KNOW? that 43 MILLION people visited our city in 2017? Do you think at least some of them will emigrate here as a result? We are guaranteed a net migration of more than 100,000 people to Toronto every year and in addition to that, Stats Can predicts that 265,000 people will settle in the Golden Triangle with the lion’s share of those people needing to be located in and around the city of Toronto.
I have clients buying condos NOW for their young children. An income producing asset for now, a place for the kids to move out to in the future as well as financial leverage for them once they enter the housing market. WIN/WIN/WIN. I’ll be waiting for your call to chat more about letting me put your money to work!
If you (or someone you know), are looking for a Realtor who cares MORE about focusing on you, your concerns, goals and the successful purchase or sale of YOUR unique home, than they care about their volume of transactions and awards, please let me know the best way for me to connect. I would love to offer my highly personal service. Contrary to that old expression, not only IS this business, but it IS personal! And, please, I encourage you to ask me any questions you may have about this post. I value your input and appreciate the time you took to read it.