WHAT IS IMPACTING THE TORONTO CONDO MARKET?
There is a lot of information circulating regarding the state of the real estate market in Toronto, and where it is likely to go in the coming months. one segment of the market that has been particularly analyzed is the condo market. Condos in Toronto – and particularly in Central Toronto – have seen some of the most dramatic changes since the beginning of the year. COVID – 19 has taken a toll on condos more than any other property type.
Here are a few factors that have contributed to this recent change:
Short Term Rentals – new restrictions & travel bans have caused bookings to plummet, or forced investors to look for long-term tenants.
Employment – over 1M+ jobs were lost in Ontario, and those who did keep their jobs were mostly required to work from home. This created a need for more space, and many people will not be returning to the office for a long time – so they left the city.
Immigration – newcomers make up a huge part of the rental/buying market. We usually have over 100k immigrants moving to the GTA every year, but this year, immigration was put on pause.
Universities – courses moved online, reducing the need for living space near universities. Travel bans also limited incoming international students, and sent may students back home.
Rent – rent has been down about 12% since the beginning of COVID-19. Many units are sitting vacant, or landlords are taking significantly less than they would have in February. Many landlords opted to sell rather than carry properties, or take lower rents which they would only be allowed to increase incrementally over the following years.
Together, the above mentioned have contributed to making the condo segment a buyers market at the moment. Interest rates are also historically low, making it more appealing for buyers to come off of the sidelines and into the market.
If you are thinking about making a move, or investing in a condo – connect with me! Expert guidance is still necessary, even though the odds are in your favour.