NEW CONDO SALES PRIMED FOR SUCCESSFUL COMEBACK IN 2021
Condo inventory is low, mortgage interest rates are unbelievably low, and pent-up demand is high. In February, the benchmark price for new condos was $1,042,064, which was up 8.4 per cent over the last 12 months. If you are thinking of buying, do it NOW, before interest rates and prices rise.
The Altus Group stats show that GTA new home and condominium sales in February were down from Last February for both low-rise and condos (https://bit.ly/3u2Xs6D). They were, however, on track with the 10-year average.
We must look at all of this in the context of circumstances. Last February set sales records, but that was just before the pandemic hit. And remember that there were far fewer condominium launches during 2020 because of COVID, as well as an outflow of Toronto residents moving to the suburbs to work from home. As I have written many times since the new year began, now that the vaccine is being rolled out, we are likely to see a return to people working in office buildings and moving back to the city. Everything is relative.
It is interesting, as well, that we will always have city people – those who thrive on the pulse of intensely urban surroundings. It is a privilege to be able to walk, bicycle or take public transit to access local amenities. Condominiums are vertical communities that enable residents to use building amenities without having to drive anywhere. Once the pandemic is behind us, those pools, party rooms, libraries, fitness facilities, lounges and the like will see activity again. We will also see an influx of immigrants who will unleash the pent-up demand. As so often happens, many of them will seek apartment-style living.