Toronto is a city that offers many options when it comes to jobs, restaurants, education and places to live. However, everyone knows that this city can be expensive and when it comes to buying a singly family dwelling home this is certainly the case. The average price for a “house” on the market for Toronto in January 2018 was $1,283,981 according to The Toronto Real Estate Board. In comparison, the average price for a condominium unit was $543,279. That’s why it is not surprising that the sales of single family homes dropped by 58 percent in 2017 while the sales for condominiums in the city increased significantly.
Data Shows Upward Trend for New Condo Purchases in 2018 | Toronto & GTA
The Altus Group, which collects data on the construction sector, stated that developers sold only 7,700 single houses in the GTA in 2017. That’s the lowest number they had collected since they have been tracking this data over the last decade. We are experiencing an upward trend toward new condominium purchases. The market has limited resources and as an investment, a condo is the safer choice over single family homes for the next short while and perhaps over the next few years. The data appeared in a Globe and Mail article on January 8, 2018.
The senior director of residential products at the Altus Group, Matthew Boukall explains that not only have prices for single homes gone up, but that builders for single homes are also facing lower demands. Further, Canadians that used to be able to afford buying a home are now choosing the alternative of buying the more affordable option of a condominium unit. Four years ago, the average price of a single family home in Toronto was $650,000. In February 2018 the average price of a single family home has soared to $1.2 million.
“One of the challenges was that builders who were offering expensive homes weren’t seeing the buyers,” Matthew Boukall said.
Condo sales in Toronto in 2017 did the exact opposite of single family homes. The Globe and Mail reports that builders sold 36,429 new condo units last year “smashing” the prior sales record set in 2016 when 29,132 condo units were sold. Most new condo units are also sold prior to construction. The Altus Group further reports that while the city of Toronto accounted for 60 per cent of new condominium sales last year, sales levels also climbed sharply in York Region to the north and Peel Region west of the city.
Young Professionals are Investing More in Toronto Condos
There are many good reasons for a young professional to consider investing in the purchase of a new condo unit in Toronto or the surrounding GTA. Toronto is a fast paced metropolitan city with many events and activities taking place at all times. As well, most of the employment opportunities are located in downtown Toronto. Having to commute long distances every day is not that appealing for the young millennial individual who wants to have more time for leisure, physical fitness and video games. Another factor that attracts young professionals to condo units are the amenities that usually come with a condominium development. Most condos today come with a workout room in the building, a pool, a party room and many other facilities and perks. And let’s face it, who enjoys shoveling snow off your driveway in the winter? Condos have all this covered and can be purchased at a fraction of the price of a single family home.
The market data is reflecting a clear indication that the demand for condos is rising steadily in Toronto and this is the right time to jump in and start building some home owner equity.
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