I attended a recent industry event, and I came away with renewed vigour about the new condominium market across the GTA in 2015. Speakers included some of the most respected experts in their fields, and combined with the recent RealNet Canada Inc. statistics released by BILD, we have a lot to look forward to as the year progresses. Despite the naysayers in the media, the fundamentals are strongly in place for a great 2015.
According to Benjamin Tal, Deputy Chief Economist at CIBC World Markets Inc., interest rates here in Canada will likely not increase this year – and may even go lower! He said that the current oil price scenario is actually helping a lot of Canadians, and they are already seeing some taking their savings and paying down the principal on their mortgage debt. In fact, many are making other mature decisions to pay down their debt loads in other ways. He also mentioned that the U.S. economy is moving in the right direction, and although their interest rates may increase in June, ours will likely not be affected by the rise down south.
A representative from CMHC spoke about Millennials, consumers between the ages of 20 and 34, choosing condominium living, and not just for affordability. They like the carefree lifestyle that condos bring. CMHC expects the rental market in the GTA to grow from strength to strength, and let’s face it: the rental market IS the condo market. Vacancy rates have dropped to 1.3 per cent in condos, and Millennials will pay to live in new buildings. In fact, according to CMHC, we do not have enough supply in the condominium market. From 2012 to 2036, it is expected that 2.4 million more people will move into the GTA, and they all need roofs over their heads.
Remember, 2014 was our third-strongest year ever for condo sales in the GTA, up 38 per cent over 2013. High-rise is now consistently taking more than 50 per cent of the market. Prices will go up, but are not expected to spike. If you have ever thought about buying a condominium, NOW is the time to do it.