If you were hoping to purchase a downtown condo in Toronto
in the near future you are in luck. There has been a flury of new development
releases this year in comparison to the same time period last year, when condo
sales were in a funk and developers were holding back product. Now the condo
market looks to be in comeback mode and new condo releases have been testament
to this new fact.
Wellesley on the Park is currently in pre-sales and the word
is that sales have gone very well before the official launch which is expected
sometime later this month, or next. And that follows the blowout success of the Yonge and College Condo which actually
was 85% sold within the first week.
Those looking to own their own home face a far more
difficult scenario, as the detached market moves further and further out of
reach for prospective Toronto homebuyers with prices now over 1 million dollars
plus for homes in the downtown core. Condos remain an affordable option with
prices starting from the mid-$350 000’s and even less depending on where you
are looking to purchase, and what kind of unit you desire to own. Average listing prices for new condos in the
Toronto area are now in the 350-400k market for new units in good buildings in
desirable parts of town.
People tend to look at the track record of the developer in
unloading new units to determine the sales success of the building. How fast,
how many and for how much do the units go for? Before the massive recession of
2008-2009 when developers had to deal with higher interest rates this curtailed
the ability to charge very high prices due to high interest rates, then when
the market crisis forced rates downward, it made condo units more affordable,
and prices went up as did the sales of Toronto condos. Now after three years of
year over year sales improvement the condo market came back to earth in 2013,
but look set to rebound for 2014.
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