By Ilan Joseph, Broker, ABR®, e-PRO®, AMP® | © All rights reserved
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Yes, its true, Toronto needs more condos.
Now before you all jump me, let me tell you why.
If you've been following my blog over the past year or two, you would have surely read that the Toronto condo market is oversaturated, and although that may have been true in 2013, it doesn't seem to be the case in 2014, which has seen one of its best condo markets yet.
If you were priced fairly, your unit was sold in 2014. A surge in demand from young buyers and immigrants has proven that all the talk over Toronto overbuilding condos is just that, all talk. We have seen no downturn or weakness in sales in 2014, even with the addition of 70,000 new units hitting the market by the end of 2015. Almost 90% of these 70,000 units are already sold and the remaining inventory that has yet to be purchased from the developers are some of the least desirable units... typically the runts of the litter, if you will.
CMHC, Canada's Mortgage and Housing Corporation suggests nearly 1 in 3 buyers is single and looking to purchase a condo in the GTA. CIBC economist Benjamin Tal said in a report released on Wednesday, "Immigrants...represent about 70 per cent of Canada's population growth...half of those who come to Canada are in the prime home buying age range of between 20 and 45. Official immigration figures don't include other "non-permanent residents," such as students, temporary workers and humanitarian refugees. Last year, there were 22,000 more non-permanent residents than there were the year before, driving the total to 774,000 in 2013, almost twice the number that came to Canada as recently as 2005."
With the Greenbelt Act inflating real estate prices in the GTA, first time buyers can no longer afford low-rise homes leaving them no other choice but to look towards the condo market. So guess what, Toronto needs more condos.
If you have any questions about the condo market or would like some information about the Toronto, Vaughan or Thornhill real estate market, feel free to contact me.
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CONTACT ILAN NOW FOR A MORE PERSONALISED SEARCH EXPERIENCE!
Ilan Joseph is a Real Estate Broker with Sutton Group and is co-founder of a 10-person award-winning Toronto, Thornhill and Vaughan real estate team.
You can find him on LinkedIn, Twitter, YouTube and Google+.
For over 12 years, Ilan has provided more than 1550 buyers and sellers valued advice and service, enabling them to reach their real estate goals.
He’s kind of like the Bruce Willis of real estate.