Most experts are worried about the long term condo market in downtown Toronto. They see all the cranes and ask where are all the buyers coming from? And they think that everyone is buying with 5% down and that the first increase in interest rates will cause the market to tumble.
While we have tended to be cautious lately – some might say negative – we still believe in the long term condo market. Most of our concerns have centred on the pre-construction market. Current pre-construction prices are just too high for investors.
On the other hand, the resale condo market is not going to collapse. In fact it will continue to grow and prices will continue to appreciate – albeit at a smaller rate than before. So let me give you five reasons:
- People want to live downtown. This demand is fueled not just by immigration but by lifestyle changes of younger generations who much prefer Starbucks to shovelling snow.
- Prices for detached and freehold properties are rising so rapidly that condo living will be the only affordable option to live downtown
- Public transit outside of the downtown is terrible and it will be years before the problems are solved. The solution is to live downtown and walk or bike to everything.
- As gas prices continue to increase, commuting will be more and more expensive. The solution is the same – live downtown.
- Utility costs are rising rapidly and the most cost effective housing to combat these costs is condo living.
Any way you slice it, condo living downtown comes out on top for most people!!