Prices of condos in Toronto are continuing to go down and the buyers could not be happier. The surge in supply is noticeable and this is making real estate a great scope of investment. However, the prices had gone up a bit in the past couple of years. The average price per square foot of a resale condo in some of Canada’s biggest cities had risen to 3.3% in the first quarter within a year of its last year. However, this increase was almost negligible and the average price of the condominium was 3.6% higher in about 2018, which was the slowest rate of growth since 2015.
There are a number of factors that have kept the prices of the condos in check. High immigration, good employment opportunities in Canada, couple with more income had definitely given rise to the demand for housing but the sales were not as expected mostly due to the high prices of the condos. When the prices were a bit lowered, with all the factors already present, the sales went up drastically and overall there has been a 45 percent run-up in the past three years. According to Shaun Hildebrand, who is the President of Urbanization, he can see a growth of about 6% in the near future. A whopping 71,378 unit of condos were under construction in Canada in the first quarter alone and the numbers are expected to triple over the duration of the remaining year.
What the market seems like
The housing market in Toronto suffered a slow period last year after the government had implemented tighter mortgage lending rules to bring some relief to the rising debts and soaring home prices in the main city. As a result, a lot of buyers moved to the cheaper condo segment and with the demand rising, the prices climbed about 11% in the first quarter of the year alone, but it still found buyers because the prices were lower overall.
As a result, price growth for the smaller units was significant but the prices of the larger ones had fallen down, which meant that those who had more disposable income could not think of buying a larger home, which they could not afford to do earlier. There is more scope now for both kinds of buyers to invest in real estate. However, the challenge is definitely on for first-time buyers and single family homes that have to find the right home within their budget but the prospects are much better than it was a couple of years ago.
Other vital things worth knowing about
As of now, the average price of a three bedroom condo reached $800,00 in Toronto in the first quarter alone and that is much higher than the combined average price of $ 727,000 which is the price for a semi-attached, row townhouses in May. For studio apartments and 1 BHKs, the average prices went below $500, 000 in the first quarter. With the prices going down, the rent has also gone down in many pockets of Toronto and that has given an opportunity to many to find comfortable housing, even if they are not immediately buying one. There is also a surge seen in condos being completed on time and within budget and purpose-built rental apartments.
The challenge for the Toronto government would be to ensure that the prices of the housing remain within the grasp of the home buyers and yet there is profit enough for the developers who will continue to make good housing without any worries for failed projects. Toronto, being the largest city of Canada, and definitely with the brightest prospects, is sure to meet both the criteria and the real estate scenario in the city will continue to bring much relief to the home buyers.