The Toronto condo market 2020 is getting off to a great start! Things are looking particularly good if you are a seller. While sales have settled a bit since the lofty prices we saw in 2017, Toronto condo prices have continued to escalate in the past year and the prediction is that in 2020 they will keep with this trend.
Of the condos that will be for sale in 2020, it is predicted that the higher levels of interest will be in the more affordable condos. In 2019, 81% of condos were purchased at a purchase price of less than $700,000. This makes sense when the median price of a two-storey home in Toronto is expected to exceed $1,000,000 this year. As detached and semi-detached homes become more and more expensive in Toronto, people are turning to options that allow them to stay in the city and minimize their commute to work. If you are interested in shopping for a condo this year, it is predicted that the Toronto condo market 2020 will rise by 6% year-over-year to a price of $600,000.
There are many reasons why the Toronto condo market 2020 is on the surge, here are the top three:
- The Toronto Job Market
Toronto is, and will continue to remain, Canada’s business capital. As long as there is a plethora of jobs to choose from and apply to in Toronto, condo ownership will always be sought after in the city.
- The Toronto Rental Housing Deficit
While job growth is an asset for residents of Toronto, when it is paired with an increase in average hourly wages it seems like a dream come true! This dream can be hampered when you do not consider other factors such as rental availabilities. RBC predicts that rental households will increase about 22,200 a year in Toronto between the years of 2018 and 2022. The growth in need is a lot larger than the number of rental housing units being built to accommodate new Torontonians.If you are looking to utilize the rental shortage to your advantage you should consider making the sound investment of purchasing an investment condo. There is a predicted high demand for rental properties for a few years to come, and you could make a nice profit as well! - Federal Government Support For First-Time Homebuyers
Earlier in 2019, the federal government rolled out the First-Time Homebuyers’ Incentive. Originally, when this plan was implemented it offered 5% or 10% incentive for a first-time buyer’s purchase of either a newly constructed home, an existing home or a mobile/manufactured home. On closer inspection, many found that the average price of a Toronto home or condo exceeded the maximum mortgage allowed for in the incentive. The minority Liberal government has made a campaign promise to expand the program by increasing both the maximum mortgage as well as the qualifying household income. This means that there is hope that first-time condo buyers in Toronto can potentially get some help from the government to live in the neighbourhood of their dreams.
In the upcoming year, be prepared for real estate markets that can rapidly accelerate, be prepared for amazing opportunities on rental properties, and be prepared to find continually increasing prices for Toronto condos. If you are looking to sell, or make the most of this booming economy, please reach out to me here. I would love to help you get your 2020 off to the best start possible!
