During the pandemic, Canadians traded in their small spaces in vibrant urban centres for tree-lined streets in secondary cities. But, as we return to normal social activities and house prices in Canada’s largest city remain out of reach for first-time homebuyers, many are turning to condominiums as a more affordable way to enter Toronto’s tight real estate market.
Local expert and sales representative with Royal LePage Signature Realty, Tom Storey, believes that condo prices will prove more resilient than other housing types over the course of the next year.
“We expect condominiums will hold their value through 2022. Their relative affordability makes condo ownership attractive compared to freehold properties, especially as interest rates rise. If you want to buy in Toronto and you plan to keep the unit for at least five years, condos are a great option.”
For the second consecutive month, the Toronto Regional Real Estate Board has reported a slight decrease in the average sale price of condominiums in the Greater Toronto Area. While continuing to rise year-over-year, condo prices were down 2.4% month-over-month in May, which is half of the decline seen in the price of detached properties.
“Condo prices in the 905 continue to be lower than in the 416. If you’re looking to enter the market at under $700,000, this is still an option in the greater region. With rental prices on the rise in Toronto and sale prices continuing to level off, buying may not be much more expensive than renting right now, provided you have enough of a down payment saved up,” he said.
Storey noted that inventory levels continue to increase each month, and have doubled since the start of the year.
“For those interested in buying a condo in the GTA, now is a great time to get out and start looking. Buyers can expect less competition and more selection when shopping for a home this summer,” said Storey.