The GTA condo market has had its ups and downs in the past few years. 2011 marked the year of record sales, while there was a dip in 2012 and 2013. As a result, 2014 looks more optimistic; developers predict a higher demand due to an increase in consumer confidence and spending. Furthermore, urban trends and shifting preferences are also contributing to a more prosperous year for the condo market.
Leading condominium developers such as: Tridel Corp., Canderel Residential Inc., Menkes Developments, CentreCourt Developments, and Lanterra Developments all have started or are planning major projects in the first half of 2014. Following the condo market cycle, they have prepared for this for a while now; developers had slowed the number of projects in 2011 and 2012 due to slower sales. This caution and discipline from the development side has allowed the market to absorb the inventory paving the way for a much stronger market. Although, there are a few drawbacks in 2014 such as rising development fees and the municipal elections which will slow down the approval process supplementary government policy and urban trends are in fact pushing for a bigger condo sector.
The importance of condos and houses for sale in Toronto exists for several reasons: Government policy is directed towards up construction instead of out. Over the last 35 years no rental housing has been constructed within the GTA, consequently without additional condos there would be a shortage in rental units. Correspondingly, 80, 000 new immigrants are expected to move into the GTA. Therefore, condos are also needed to maintain affordable home ownership options. Aside from government policy, individual preferences are also changing and are contributing to a greater demand for condos.
In today’s busy world people value time more than having a back yard. As a result many are opting for the condo. Transportation is a major issue and many are choosing to work and live downtown. Condos are a lot cheaper than houses, there is a about a $200,000 spread. Furthermore, condos can be easily found in the center of downtown, close to subways, transit, and other amenities. The largest segment of the population continue to be first-time buyers in the $300,000 range, where as baby boomers dominate the luxury condo market. Additionally, a new emerging segment is the single female buyer.
If you are debating about buying a condo due to future market conditions, you should be worry free, all indicators point to your condo being worth more tomorrow than it is today.