The strong demand for condo properties in Toronto endures, as they continue to be the most rapidly appreciating property type. The average value of a condo from the second quarter of last year has increased by a staggering 7.2% to $542,203. This incredible growth is made more apparent in comparison to the price growth of other property types, such as two-storey homes that grew by only 1.7% to $970,772 and bungalows that appreciated merely by 1.6% to $806,648. Overall, property prices increased by 26% since the second quarter of 2018 to $841,729, and given various economic factors, prices are expected to appreciate only slightly by the end of the year by 1.4%.
Much of the condo market’s vigorous growth was driven by demand for residential properties valued under $1 million, a trend that is predicted to intensify. Moreover, initiatives aimed at first-time home buyers, such as CMHC’s incentives, have bolstered the purchasing power of that demographic. By enabling new property buyers to participate in the housing market, the condo market may be spurred by new demand. A number of buyers working with Royal LePage, for example, have held back purchasing a new property to benefit from the new initiatives.
However, while the prospects for new buyers in the booming condo market are uplifting, it is important to analyze them in the context of ownership statistics. Data collected from Statistics Canada reveals that almost 40% of condo properties in Toronto are empty, rented out, or act as second properties for the owners, making them a profitable investment for those who can afford to own a condo in the increasingly expensive housing market. Insufficient supply fuelled by those investing in condo properties has helped increase rent rates by 30% from 2006 to 2018. The majority of new condo projects in Toronto offer luxurious, expensive units that are quickly purchased by foreign investors, which serves to amplify the difficulty of purchasing a property.
If you are looking to purchase a condo in Toronto, let the residential mortgage brokers at Clover Mortgage help you find your dream home or your next big investment. At Clover Mortgage, we understand the difficulties of purchasing a condo, in light of high demand and increasing prices. We are a team of compassionate mortgage brokers who will work tirelessly to help you enter the property ownership market with the ideal mortgage for you. Whether you are a prospective home buyer or a property investor, our residential brokers will find the best mortgage to suit your needs.