When you read media reports about statistics, it is important to place them in the context of the big picture. We see a lot of negativity right now about the prices of new homes being lower than last year. Remember that 2017 was an anomaly in our cyclical real estate industry. New condo prices increased 30 per cent despite the Fair Housing Plan and rising interest rates. It was a long time coming in Toronto for prices to peak like that.
Comparing this year’s sales to that blockbuster year, however, is misleading. In general, new home real estate prices may be down somewhat, but prices are pretty much holding firm for condominiums. Condos remain the strongest market segment in Toronto. Since January, Baker Real Estate Incorporated has launched several projects, and each has proven an unqualified success. It is easy to understand why. Most first-time buyers and Millennials have to favour the lowest price in housing options, and that translates to condos.
Demand still exceeds supply when it comes to new condos in Toronto and the GTA, for both investors and end-users. Our employment situation is good; the economy is strong; and we have ongoing immigration from foreign countries and other parts of Canada. Toronto has joined the ranks of the world’s most cosmopolitan cities, and relatively speaking, real estate here has been underpriced for a long time. We are catching up, and people of all ages are finding ways to achieve homeownership.