The pandemic had a signifcant affect on the real estate market in Toronto, particularly for owners of condos. However, since the start of the pandemic in March 2020, sales almost doubled the following year and although the real estate market is beginning to level out, there is still a high demand for condos in Toronto.
WHY DID THE PANDEMIC HIT THE CONDO MARKET HARD?
Condos are often a first choice for first time home buyers and for migrants and immigrants who are in Toronto and the GTA (Greater Toronto Area) to work or study. The pandemic lock downs and restrictions on travel ultimately limited the condo buyers’ and renters’ pools.
Showings of condos during the pandemic were limited as realtors had to work around the buildings’ rules and restrictions in respect of social distancing.
In addition to this, there was a general feel that Toronto buyer’s and Toronto renters alike wanted a condo in a smaller building where there are less people using the communal amenities.
HOW ARE THINGS CHANGING AS WE ARE COMING OUT OF THE PANDEMIC?
As restrictions on social distancing and travel are easing, the demand for condos in downtown Toronto is on the rise, which is excellent news for condo owners looking to move up the property ladder.
Although average sale prices of condos have significantly increased over the past couple of years (by 16.4 per cent from 20220 to 2021 and by 22.5 per cent from 2021 to 2022) interest rates are also increasing and property prices are beginning to settle again. We cannot be certain of how high interest rates will increase over the coming months, so it could well be a wise decision to consider moving up the property ladder now and cash in on the high sale prices of condos in Toronto.
WHAT YOU CAN DO TO PUT YOURSELF IN THE BEST POSSIBLE POSITION.
If you are an owner of a condo (or any type of property) and are thinking of moving or upgrading to a larger home then there are a number of things you can do now until the time comes to purchase a new property and/or sell your condo.
If you have a mortgage on your property then you can increase monthly payments, which will in turn reduce your principal and the interest payable on the principle amount. You could also consider renting out part of your property whether that be by way of a roommate or short term furnished rentals whilst you are away on vacation. Both of these suggestions will increase your equity in the property.
It is key to ensure that you maintain your Toronto real estate property in a good state of repair. If your money allows, consider some renovation as this could add value to your property. Be careful nto to personalize your property too much though as this could make it unattractive to potential buyers.
Hopefully you will have built a good amount of equity in your current property gi en the current Toronto real estate market. However, you should also continue to save as much as you can for a down payment on your next property as this together with the equity you have made could be key to determining what sort of property you can afford to purchase next.
If you are considering upgrading to a larger property then please get in touch with our registered Toronto Real Estate agents and Real Estate brokers that are licensed with OREA (Ontario Real Estate Associaton) and TRREB (Toronto Regional Real Estate Board) at www.macgrouprealty.com or by emailing firstname.lastname@example.org or telephoning 416-222-0025 / 1-877-239-0025.