The outlook for 2019 new home sales in the GTA is positive after some issues such as the OSFI stress test imposed on buyers caused a dip last year. According to the Altus Group stats released by BILD, new condo sales across the GTA in 2018 were down 38 per cent from 2017, but were just 4 per cent lower than the 10-year average. Low-rise sales, on the other hand, were down 50 per cent from 2017 and down 74 per cent from the 10-year average. The good news is that in December, the benchmark price for new condos was up 11.2 per cent over the year.
It is obvious that condominiums continue to be the new homes of choice for the majority. Attainable prices, the opportunity to build equity quickly, easy access to transit and local amenities, the convenience of building amenities, the ongoing demand fueled by immigration, and the scarcity of available low-rise choices are all reasons why. Granted, OSFI’s stress test imposed last year had a lot to do with the dip in sales, but even with that, people still found ways to buy new condos.
The economic indicators are good for 2019, including ongoing immigration, low unemployment rates, low mortgage interest rates and affordability compared to the rest of the world. Remember that real estate is a cyclical industry. Condominiums continue to be a great financial and lifestyle investment!