What we’ve had is a slight price setback due to an outside event caused by the government.” PREDICTIONS MADE BY OUR SPRING PANEL
surprising that condominiums are holding their own. In fact, apartment condominium and townhome sales represented 35 per cent of total GTA residential sales between January and July 2017.
Condominiums are not avoiding a correction because we haven’t had a correction. What we’ve had is a slight price setback due to an outside event caused by the government. This is not a market-driven event. This is not something that has happened
due to market forces. This is something that happened because the premier enacted various policies to try to slow down the real estate market. Look to Vancouver as to how that will ultimately work out. One year later Vancouver has exactly the same issue as before. Low supply, higher prices. Buyers read the news. Some portion of buyers took a breather, hoping for a substantial correction. This is why things cooled a little. They will be back in the fall or spring. They will likely pay more money for the same house. Condos are in a good position because they are typically the affordable option. The Ontario Municipal Board changes, and planning delays have created a shortage of new units coming to the market. This shortage of new housing will get worse before it gets better.
Toronto is a very attractive destination to live. We have 100,000 people, including new immigrants, coming into the city on a yearly basis. Right now condos are the most affordable housing option for first-time buyers and young families.
Going forward, governments should be focusing on supporting the development of more “missing middle” type homes, such as townhouses, stacked homes and mid-rise buildings, to give families more choice.
I think it’s a combination of two factors. Firsttime buyers are getting into the market, and condos are still an ideal entry point. As well, Toronto appeals to people from around the world as a safe haven to both live and invest in.
Post City’s real estate roundtable was held in March of this year