Is the Toronto Condo Market Going To Crash?
As the publishers if magazines and newspapers sell their "advertising" on the doom and gloom news of the world which readers "feed" on with a frenzy! The question above lingers in many would be buyers who are influenced by the media and the advice of family and friends.
Living in the trenches, hearing, talking and breathing real estate in the Toronto market every day- I do not buy the same "sensational" news of mass media. I'm sure prices will fall in some areas of Canada. But we all know Real Estate is very localized and dependant on local market influences.
You see, the Condo Market adheres to the same Supply & Demand concept that all markets do. People ask me Are We Building To Many Condos?
You would think so by viewing all the cranes hovering in the skyline throughout Toronto. The facts show differently and the builders wouldn't be announcing newer and bigger projects if they felt supply was to much as it would only hurt future projects.
The facts are that we get about 100,000 annual new migrants to the GTA area. To house them I'd suspect we need around 25,000 - 40,000 + new homes.
We also have parents buying condos for their children who work downtown or to study. Some of them also have long term plans to downsize into one. Myself included.
Finally condos are the most affordable choice for first-time buyers. Sure they are getting smaller but that is appealing to the new business class, young professionals and to those who travel often. They are out and about all the time... plus it's a big plus for them to lock the door and not have to worry about your home.
We also have to remember that condos bought in 2012 won't be ready until 2015, 2016 or later. The supply isn't immediate. Plus builders need to sell a certain percentage 75% or so to get "construction financing" and usually it takes 5-7 years for the entire process.
So will 2012 be a bust or another great year like 2011? I know for fact it will be an absolutely fantastic year for Buyers & Investors. If you don't buy... believe me there are another five people ready to do just that. Especially condos that are on the public transportation line and with today's record low interest rates.
Jas Jagpal, Broker
RE/MAX Dynasty Realty Inc
To Buy, Sell, Invest, Assign or resell your Condo.. give Team Jagpal a call.
