The downtown cityscape of Toronto is one that is filled with condos. Over the last two decades, downtown condo living in Toronto and throughout the GTA has become a popular alternative to purchasing a traditional family home.
As prices continue to rise through 2018 and moving toward 2019 on almost every home in the city, condos provide an opportunity for young professionals to taste home ownership. Still, it isn’t always easy to find the right condo. You have to decide between price, location, access to transit and stores, and other factors that may be important to you.
Regardless, one thing is constant. Downtown condo living over the last decade has been a profitable venture for homebuyers.
Downtown Condo Living and Home Appreciation Continues to Rise
One of the basic assumptions of real estate is that the value of your home will increase over time. The rate at which it increases is usually determined by the market and other external factors like interest rates and your municipal, provincial, and federal laws.
In 2016, the average price of a condo in the GTA was $415,454. If you held your purchase into 2017, you more than likely saw your investment appreciate by nearly 28% to around $532,032. Even in the world of real estate, a 28% return is nearly unheard of. Unless of course you are from Toronto. Year in and year out, the Toronto real estate market has been increasing at a rapid rate.
Experts were predicting that condo growth will decline in 2018, but current projections show that most individuals enjoying downtown condo living will see their property continue to appreciate in value. A quick look at the trendline shows that while the growth rate is declining, condo owners can expect to generate additional equity out of their investment this year.
In October 2017, the annual growth rate was still a staggering 21.56%, down from June 2017’s peak 30.6% 12-month growth rate.
Another statistic to consider is the number of new listings and condo sales per month. At their peak in May 2017, new listings reached 5,053 and sales were 2,854. In Nov 2017, there were 3,243 new listings and 2,210 sales. In comparison, the market cooled down in August 2017, with those same numbers registering in at 2,914 and 1,996 respectively.
Downtown condo living will never cease to be popular in Toronto and throughout the GTA and its suburbs. There is simply too much to do downtown and many young professionals enjoy having all their favorite amenities nearby. Condo owners who live on, or near the lake, benefit immensely from that fact as people often place a premium on a well-located condo with an exceptional view. Even condo owners that are located outside of downtown will continue to see their property appreciate so long as they are located in areas with access to public transit, new shopping developments, and other amenities like quality schools, hospitals, and other important services.
The condo market is currently being driven by millennials who are eager to become homeowners. Unlike their parents, who typically purchased traditional homes, condos are often the only option for them if they want to become homeowners. Because of this, demand will remain high and those enjoying downtown condo living will see their property appreciate in value over the next several years. The only factor that could drastically change this is the possibility of a correction, additional legislation that makes purchasing a condo more difficult, or rising interest rates.
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