What Will Happen With the Toronto Condominium Market for New Construction

We have had a very steep climb the last 10 plus years for all types of real estate.  Much speculative buying has occured in the condominium market driving prices up, up, up!  Purchasers who bought at pre-construction pricing were able to reap the rewards with a significant return on investment.

Only a year ago realtors were hiring people to stand in line for them at projects like 2 Bloor so their clients would get first dibs. And before the sales office opened the prices were increased.  

But as with any real estate purchase there is a limit to what the market will bear and now we are seeing some very different sentiments going on around elections, economy and global recessions.

So do we need to ask the question is the great big ride for condo speculation over?  What happens to prices, will they rise, plateau or drop?  And when you do take possession on completion, what then?  if the gains may not be as great, will you still go ahead and speculate?  What is your pain threshold?  With the economy going into a tailspin, some projects may not be going ahead since they may not be able to sell enough units to begin construction.

If you are still investing in condominiums and I am still of the opinion that these are wise investments, given a few factors like size, layout, and most importantly location.  Stick with the downtown core, subway lines, and developers with a strong reputation for quality and customer service.  With many Baby Boomers downsizing, a condominium with a decent amount of square feet is always going to be a smart choice.

To invest in some new condominiums today give me a call 416-518-8188.