In the past few years, the Toronto condo market has been a wild frenzy.
Rising prices, rising rents, short supply of condos, and separation from the detached home market has been quite the ride.
And it’s not over yet.
The sale for preconstruction condos are estimated to top $1,000 per square foot in 2019. This is an increase of 68 per cent over 3 years, from 2016 (which saw preconstruction condos selling at $595 per square foot).
It makes sense that preconstruction condo sales are pricier than the condo resale market. However, since 2016, the resale condo market saw a 50 per cent increase. This led to the 2017 condo craze.
In 2017, preconstruction condo sales were priced lower than resale which caused nearly 60,000 brand new condos to be purchased in what appeared to be a Black Friday-style sale.
So what does this mean for you?
Well, if you’re looking at moving from renting to owning a condo for the first time, or simply wanting to upgrade to a bigger condo in Toronto, then you still have time to jump into the frenzy. However, the trend is looking like it will continue to rise, so you’re best bet is getting in quick.
Condo prices are expected to jump on average another 6 per cent in 2019 which would extend the 1 year (and 7-month) trend where the condo market exceeded the detached home market.
Toronto Condo Price Increases… Then And Now
Toronto Condos March 2019
|Average Sold Price||$548,888|
|Days on Market||11|
|2 Bedroom Condo||$650,035|
In March 2019, the average Toronto Condo sold for $548,888.
This is up 6.2% over the year since March 2018 (and as told above, is expecting to rise another 6% in 2019).
When you look at how far the condo prices have come over the 10-year mark, it’s incredible.
This means, there has been a 114% increase over 10 years, more than doubling the price of a condo.
So if you got a condo back in 2009 you’ve hit the jackpot. But there’s still money to be made if you have the financing options available to leverage.
How Does Toronto’s Condo Market Compare To Nearby Cities?
Mississauga Condos March 2019
|Average Sold Price||$428,000|
|Days on Market||12|
|2 Bedroom Condo||$444,386|
Hamilton Condos March 2019
|Average Sold Price||$340,000|
|Days on Market||20|
|2 Bedroom Condo||$338,923|
Brampton Condos March 2019
|Average Sold Price||$387,500|
|Days on Market||12.5|
|2 Bedroom Condo||$359,989|
If you’re thinking about deciding between investing into a Toronto condo or a nearby city, you have to consider a few things. In comparison, a 2-bedroom condo in Toronto in March 2019 sold for $650,035, while Mississauga saw $444,386, Hamilton saw $338,923, and Brampton saw $359,989.
Looking back over 10 years, seeing a double return for those who invested early should give hope to those looking to Invest in the market themselves. In the short term, with the estimated 6% increase this upcoming year, there is an opportunity to jump in.
However, if you are willing to get into a slower market, and invest for the long term (and of course are open to moving to a nearby city), you can get in for nearly 50%-60% of the price by heading to Mississauga, Hamilton, or Brampton.