Condo ownership in Toronto can be an attractive option for people who simply cannot afford the out of control pricing of new and existing homes in the Toronto real estate market.
The Toronto condo market is a great alternative to home ownership if you are a first time real estate buyer or looking to downgrade your current real estate investment due to changes in your personal finances or other outside factors. As each year passes, condos are eating up a larger share of the total Toronto real estate market with no end in site.
With the Toronto condo market hot, many construction companies have helped to fuel a condominium construction boom in the GTA that has been under way for more than 7 years now. The result of all of that construction is a massive influx of people moving into the downtown core to live and work.
An interesting fact: Toronto is the number one city in N. America for new condo construction and availability.
Clearly the people of Toronto as well as the new home construction companies working there are telling us that the people of Toronto are looking for more affordable ways to live downtown.
The average price of a condo in Toronto last year was $225,000 compared with $210,000 in the previous year. While average condo prices may be rising this number is clearly much lower than the average cost of a new home in Toronto.
The number of home sales in the downtown core, when you include new and resale condominiums in the mix, greatly exceeds those in the other parts of Toronto and also experiences more competition from buyers helping to drive up the prices for real estate in the downtown core in general.
Buying a condo does not have to feel like “settling for less” as most condos come with first rate amenities such as a sizable terrace, a great view, a true loft, a location close to public transit or perhaps even a swimming pool or gym in the building.
If this is your first foray into real estate ownership or you are an existing homeowner who would like to reduce their debt load you can have confidence that investing in the Toronto condominium market will be a smart investment decision.
Toronto has indeed earned it’s reputation as the top market for condominiums in North America with over 260 projects planned or already under construction. “Deteriorating affordability levels in major Canadian centers have led to the resurrection of the condominium lifestyle in recent years,” said Michael Polzler, executive VP of Re Max Ontario-Atlantic Canada.
With the costs associated with home ownership continuing to climb upwards year after year condominiums can help to play a role in bridging the gap for people who would like to invest in Toronto real estate but cannot afford to buy a home. This option becomes quite attractive to first time buyers or buyers without a lot of responsibilities such as having a large family to plan for.
While condo prices may be heading upward, there is still opportunities for the bargain hunter to find a condominium in a nice neighborhood for less than $125,000. The advent of the internet has made finding these bargains easier than ever with the MLS as well as private sale real estate sites easy to access.
With record sales in 2007, forecasts for the 2008 Toronto real estate sales market are lower than 2007 record levels with average prices expected to rise at a slower pace.