Toronto’s Condo Market is Already Heating Up Again
Monday Jan 11th, 2021
Whether it was due to mortgage rates, vaccine implementation, or just something in the water, December saw Toronto’s condo market activity soar to new heights.
The condo market turned around, literally, in a span of six weeks.
The surge in condominium sales is being largely driven by demand from investors who are jumping in, not necessarily end-users or [people] buying the first-time condo. It’s a combination of a lot of factors. Number one is that prices are down from their peak. They’re down about 10%, so investors see that as an opportunity. Mortgage rates are well below 2%, which also makes investing very attractive, and then the idea that the vaccine’s going to be rolled out.
Downtown condo prices still bucked the trend due to ample inventories in Canada’s largest cities—the downturn in the rental market has prompted many condo investors to sell.
Softer condo prices are now drawing more buyers in. Existing condo sales soared virtually everywhere in December. It is expected condos’ growing affordability advantage over single-detached homes will boost demand in 2021.
It is believed condo action will ignite this spring. Once the condo market is heating up everyone will jump in.