I am always amazed at how negativity can abound about real estate when the facts bear out a positive outlook. Take new condominiums in the GTA, for example. We have been reading concerns about the unsold inventory of condo suites, yet Urbanation reported that during the second quarter of 2015, the figure dropped 13 per cent over last year’s same time period. Often considered a major indicator of how well condos are doing in the marketplace, unsold inventory seems to be telling us things are just great, thank you very much.
Demand also continues to be strong in the resale condo market, with TREB statistics noting that July 2015 sales were up 14.4 per cent over last July. And for all of the sensational media about skyrocketing housing prices in general, the overall sales figure accounting for both low-rise and high-rise resale homes and condos was still up 8 per cent over July 2014. According to TREB, demand continues to outpace supply.
All of this comes at a time of the year when home sales typically dip, with people vacationing and making use of their cottages during the summer weather. The surge of condo interest definitely has to do with the average price of low-rise homes being out of the financial reach of both young buyers and baby boomers. The appeal of buying now, while mortgage interest rates are still historically low and before prices go up again, is irresistible for many – especially for completed suites they can move into quickly. Add continued strong immigration to the equation, and it looks as though the GTA’s condo market is on track for another great year. The big picture is rosy!