We are at the end of the first quarter of 2018 and after many forecasts about Toronto’s condo market and the new mortgage rules from the beginning of the year, all the talk about the market has yet to stop. If you are still on the fence about entering the condo market with a purchase, here are some things to go over before making a decision.
The Canadian economic forecast looks good and it is believed that the demand will rise even more in spring once younger buyers have had some time to save up for a large down payment. Demand for condos in Toronto has already been on a steady incline, with prices rising 24.5% year over year on average. This means that prices will continue to rise so if you are concerned about affordability, be cautious about timing.
One significant factor to pay attention to is the millennials. These young buyers are actively driving condo sales as they have been priced out of the single home market. Many will still be forced to stay in the rental market due to the new mortgage rules that put more pressure on buyers, but many are also saving up diligently for the down payment on an affordable condo unit.
The condo market is closely related to the single home market so you want to pay attention to the changing trends for single detached homes. For a while now there has been a supply shortage of single detached homes, which has been another huge factor behind the rising demand for condos.
The weak loonie has been drawing foreign investors to the condo market as well. This is another factor to carefully watch. With all of these things at play, one must prioritize well and think about their unique situation before coming to a decision. Toronto’s economy is positive and prices and demand are rising faster than ever. When will you be jumping into the market?
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