Thinking About Buying a Condo? Now Could Be the Time
Friday Dec 11th, 2020Share
As the coronavirus began to spread and life as we knew it changed, so did real estate in southern Ontario. As people retreated to their homes and as remote work and online learning took hold, the housing market saw a spike in buyers wanting spacious houses with yards, while urban condos became less desirable.
Nine months later, the Greater Toronto Area continues to see a sharp increase in demand for single-family homes, including suburban regions of the major metropolitan areas. In November, sales of detached homes were up 30% across the GTA with 33.6% in the 905 areas and 19.3% in Toronto. Sales of semi-detached homes in the GTA also saw an increase of 33.9% with 32.7% in the 905 and 36% in the 416.
Now, the condo market – that’s a different story. November saw a meagre 7.1% annual increase in sales with most of the growth happening in the 905 where sales rose 23.3%, compared to a 0.8% increase in the City of Toronto. Condo prices also saw their first drop since April.
With fewer people needing to live and work in urban areas, reduced numbers of foreign students requiring accommodation and almost no new immigration or tourism to fill rentals, the once-solid condo sellers’ market has switched to a buyers’ market. These are especially challenging times for condo investors, but for first-time buyers and downsizers, opportunity is knocking.
With lower condo prices and less competition for listings, the market is far more favourable for buyers than it was nine months ago. But, time is ticking. As we transition into post-COVID life, the condo market will experience a resurgence as population growth resumes in urban areas, especially when workers return to in-person work and immigrants and non-permanent residents call the GTA home. This period of transition will undoubtedly lead to an increased demand for condominium apartments for renters and buyers. If you’ve been thinking about buying a condo, now is the time to act.
Don't wait! To find out how to get started, please contact me, Deborah Clerk, Real Estate Sales Representative, ASA, with Keller Williams Real Estate Associates, Brokerage, in Mississauga, for details.