What’s Happening ~ Toronto Condo Market 2012
Ontario Real Estate Source
By Brian Madigan LL.B
Although the world is filled with pessimists and a lot of them see the Toronto condo market going bust, the facts and the figures don’t seem to support that conclusion.
There are two major driving forces behind the most active condo market in the world:
1) net new immigration, and
2) low interest rates.
Condo developers are just reacting to the demand. A lot of people are moving into the GTA each year, actually upwards of 100,000. They have to live somewhere!
Affordability is relatively attractive, so they are buying.
The condo lifestyle is becoming more popular. It works for several different groups:
· New and first-time homebuyers
· Trade up Buyers
· Empty nesters
· Investors
· Out of town buyers
Each of these different and rather diversified groups will find a developer catering to their needs.
Prices of condos have kept pace with single family homes. Both have increased over the last few years at about 7% per annum. Compare that to the stock market or the return on bonds or bank accounts.
Newspapers often sponsor articles that spell the doom for the condo market but the fact of the matter is that other than a “hunch”, they don’t have any other supporting facts. The real facts seem to suggest otherwise. The Toronto condo market will be hot well into 2012.
Brian Madigan LL.B., Broker is an author and commentator on real estate matters, if you are interested in residential or commercial properties in Mississauga, Toronto or the GTA, you may contact him through Royal LePage Innovators Realty, Brokerage 905-796-8888
www.OntarioRealEstateSource.com
