Market Update for February 5th
Analysts say low interest rates and a light at the end of the COVID-19 tunnel is driving up demand for condos in the city and the momentum isn’t stopping anytime soon. Real estate experts are all surprised by the pace of the market and suspect that the vaccine rollout has had an effect on buyers. And while there aren’t as many people from outside of Canada purchasing condos, the demographic of buyers has changed. The fact remains that downtown Toronto has a limited supply of land. Anyone who follows real estate trends can understand why downtown Toronto is beginning to catch more condo investor interest.
Toronto condo prices are still down about 5% year-over-year and down about 10% in downtown Toronto from their peak back in February 2020, which presents a good buying opportunity. The condo market has been traditionally reserved for first time buyers and downsizers, but as freehold homeownership becomes less affordable, we expect even more activity. Once activity ramps up in mid-2021, it won’t be surprising to see condo prices rising to new levels.