In This post we’ll cover few of the top reasons why this year is actually a great time to buy a pre-construction condo in Toronto and GTA. Despite the world’s economic downturn because of covid-19, it is still looking positive on property sales and a great investment forecast for Toronto condo market this year. The Toronto condo market is stable and ready for investing.
As the most affordable market type in Toronto, pre-construction condos will surely make a great deal of investment. The average cost of a Toronto condo has risen quite dramatically, the Toronto condo market is still looking more of an affordable purchase even for first time home buyers.
2020 is A GREAT TIME TO INVEST IN THE TORONTO CONDO MARKET
Many buyers, especially in downtown Toronto, have been pushed out of the market for a Toronto home. Those searching for a home alternative will find themselves purchasing more feasible and fund-able condos or sky homes, more likely larger condos as these are the more affordable alternative. When we look at condo prices in Toronto, we must look at local data, the actual areas we will actually be buying a Toronto pre-construction condo as an investment. We want to look at the average price growth over the last three years. It is absolutely some killer growth from 2016 to 2019 at a whopping 37% price growth. So imagine if you invested in condo three years ago, you could have earned an extra 37% on your investment. Same goes if you invest in Toronto pre-construction condo this year as it is expected for a steady growth this year and the coming years.
Toronto Condo Market
It is expected that condo investments in 2020 to perform at a similar rate or better than we saw in 2019. There was a spike in buyer interest in the fall, and this will translate to more demand in 2020. One of the reasons a spike was seen in buyer activity is that mortgage rules and rates were adjusted to favor buyers.
However as we all know, the covid-19 pandemic is shutting down financial activities across the globe and is producing as what they call a temporary market crash. With the oil prices going down, covid-19 pandemic and the global recession talks, no one can never be 100% sure of the housing market across the country except for a few which includes GTA. Why? It’s because the condition in in Toronto however, are much different from other cities such Calgary, Edmonton, St Johns, Dallas and Houston. The plummeting oil price is flattening those housing markets. In Toronto’s case, a severe shortage of homes and condo apartment rentals will mean something more severe that would be needed to seriously take the Toronto real estate market down.
Some are still happy with the low mortgage rates, high construction releases, and covid-19 pandemic factor because it opens up availability and affordability in return. Some real estate experts may fear a strong price deceleration but for now, due to supply issues, the forecast for the months ahead is still for rising rents and condo prices in Toronto the entire 2020. So far the stock markets may be worried but Toronto employment will surely come back strong.
With pre-construction condos in the affordable range within the Toronto housing market. Most buyers will be heading to Toronto’s condo market for an investment condo or a place to call home.
Business report: Looking ahead to the real estate market in the coming months
Real Estate Market 2020
*Source: Toronto Real Estate Board *
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