The Toronto Condo Market is Holding Steady Halfway Through 2011
The summer buying/rental season is in full swing, and so far, numbers in Toronto's thriving condo market are holding steady. We should once again be thankful for conditions here in Canada that are allowing for lucrative investments as well as a wide variety of choices when it comes to finding a home in this great city. Here are some encouraging statistics as of the end of June:
- Resale volume is the same as in 2010
- Prices have increased by 5 percent
- The downtown Toronto condo market has seen an increase in sales of 10 percent, and an increase in prices of 3-5 percent
- Condo rental rates are increasing about $100 a month on average
- The current vacancy rate is under 1 percent and the average rental turnover is 10-15 days. We expect this trend to continue until the end of the year
- Larger condo units are now selling at the same price per square foot as smaller units
- More investors are choosing to sell their units, rather than rent them
Although "experts" are predicting doom and gloom for the Toronto housing market based on the current economic climate in the U.S., we believe the market will continue to hold steady for the foreseeable future. Keep in mind that mortgage rates continue to fluctuate only slightly, and that banking regulations have been successful in keeping defaults to a minimum. Another important factor to consider is that figures are based on local trends, rather than national ones. Toronto continues to be one of the most desirable North American cities to live and work in; we don't believe this will change any time soon.
Construction projects are still in progress in the most desirable neighbourhoods, particularly in North York. Keep an eye out for future investment opportunities in prime locations such as Yonge and Sheppard, Sheppard and Allen Rd, and Sheppard and Leslie. All these locations will soon be home to more high rise luxury properties.
For more information on how we can help you make a wise investment in a Toronto Condo project, give us a call at (647) 477-2992.