NEW TRENDS IN THE TORONTO CONDO MARKET THIS FALL
By Condos.ca September 11, 2018
One-bedroom condos are a hot commodity
While larger inventory, units over $1.5 Million, might be moving slowly this fall season, inventory below that price-point was moving quickly this summer, with high demand for one-bedroom condos in Toronto. We expect that trend to continue. In particular, we expect one-bedroom condos with parking spaces to be flying off the shelves.
One-bedroom condos are still selling in multiple offer situations with final sale prices at or above the initial asking price, sometimes $100K above asking. The one-bedroom price point, roughly $500-700K, is very attractive for first-time buyers and investors. First-time buyers are looking for a real estate entry point, and one-bedrooms or studios are simply all they can afford. Investors like one-bedroom condos because they are a high-demand commodity in the rental market, which translates into a cash-flow positive investment.
With the prices of condos for sale in downtown Torontocontinuing to rise, right now at an average of $971 PSF, larger units over $1,000 SQFT are becoming much greater financial consideration for active buyers if not downright unaffordable. The question for many is likely whether to buy in downtown Toronto or look elsewhere in the GTA or further afield. In downtown Toronto, you’re looking at a $1M two-bedroom condo versus the possibility of a freehold house somewhere else. For young families, especially, whether to stay or go will be a big part of the decision to buy this fall.
Downtown, Toronto, Canada