Once again, there is a good news story about the condominium marketplace in the Greater Toronto Area. We are sitting in what will possibly be the third-best year for sales – ever. Despite CMHC’s concern early in the year about a glut of built condos, the situation is taking care of itself with new construction condo launches selling well and existing inventory being absorbed. This is great news for everyone, especially investors. In addition, the supply of new low-rise homes continues to decline, reaching a record low in August, creating even more demand for condos.
At Baker Real Estate Incorporated, we see some interesting trends, including the luxury market picking up again for end-users. In fact, some empty-nesters are actually right-sizing UP at a point in their lives where they would typically be opting for smaller square footages. Many of these condominium purchasers have longtime low-rise homes to sell for several times what they originally paid. Although new low-rise home prices have skyrocketed, new high-rise condo prices have remained relatively stable for the past year, so these buyers can afford to go for the crème de la crème. They are attracted to the idea of having a single-level home in the sky that is protected and maintained when they travel.
All condo owners enjoy a carefree lifestyle, and today’s residences are gorgeous. Viva the condominium!