*Index and Market Summary based on previous 14 days rolling Average from Sold & Leased listings. PSF = Price per FT2
The astounding rate at which Toronto condo prices have risen should have anyone who bought a condo four or five years ago jumping for joy today. Condos.ca PSF Index shows that since February last year an average 800 sqft condo has appreciated roughly $78,000, while condos purchased in 2012 are now worth about $130,000 more than what the owner paid.
For condo owners watching the Toronto market, the temptation to sell grows with each passing day. Of course, the hope for continued growth keeps some people on the fence, as does the worry over potential price corrections. But the truth is, today is a great day to sell your condo.
In the Toronto condo market playground, do you have to be a bully to win the bid?
With notably low inventory in Toronto’s freehold housing market and the average price up above $1 million in December 2016, more and more people are expected to buy condos in Toronto in 2017. The rise in demand is causing heated fights for available listings that are over almost before they start. As a buyer in Toronto’s condo market, you must be prepared to bully your way to the buyer’s seat or else risk never making it to the table at all.
One-third of Toronto parents are raising their young families in a condo or apartment. With the lack of affordability in Toronto’s free-hold housing market, condos are becoming a much more desirable entry-point for first-time buyers as well as young families. But the question that remains is where do you find family-friendly condos and what should a young family be looking for?
What Is A Family-Friendly Condo?
Andrew Harrild, a Condos.ca Partner and VP of Sales, says that young families should first be looking for condos that have a number of bedrooms, typically 2 bedrooms or more. You want to find active amenities in the building, with a day care on the ground floor or somewhere nearby. And the building should be close to public transit, outdoor parks, and schools.
During your search for condos in Toronto, you might come across something called an assignment sale. Condo Pro Abby Yen has offered up some helpful tips about how to navigate an assignment sale, but first let’s explain what it means to buy a condo on assignment.
When purchasing a pre-construction condo, the buyer receives ownership of the Agreement to Purchase and Sale contract, which acts as a hold on the condo until completion. But before the condo is completed, the original buyer (the assignor) can sell the ownership of the Agreement to Purchase and Sale contract to someone else. When a buyer chooses to sell this ownership contract, it is called an “assignment sale.”
After all the record-breaking trends we saw in 2016, it should be no surprise that the year ended with the Toronto condo market outperforming the S&P/TSX Composite Index.* As of December 30, the Condos.ca price-per-square-foot index showed a year-over-year increase of 22.44% for the GTA condo market.
Toronto Condo Market 2016 Wrap-Up
Yes, it was a hot year for the Toronto condo market, ending with a 22.44% annual investment return compared to 17.51% for the TSX Composite. Looking back at three, five, and ten-year trends, we found that the condo market has consistently outperformed the TSX, and we expect that to continue in 2017.
Well, it’s a new year and there’s a new outlook on the horizon for the Vancouver condo market. While there are still some buyers sitting on the fence waiting to see what’s going to happen with prices overall, many investors and first-time buyers are recognizing that condos for sale in Vancouver are a smart choice right now.
Vancouver Condo Market Looking Healthy
What most of the fence-sitters are worried about is in the detached market, in which we’ve seen declines of nearly 10% and many expect to see a further slide. In comparison, the condo market is actually quite healthy.