Toronto Condos Are About To POP.
A recent change to mortgage lending rules have literally removed thousands Freehold home buyers from the Toronto Real Estate market. In our office alone we have 2 Buyers that were looking for $800-850K house who are now forced to compromise and consider larger condos to get into the market (or rent). We also have 3 first time buyers that can no longer qualify to purchase $380-400K Toronto Condos and are forced back into the rental pool putting further pressure on Toronto Rentals as well.
Two things are going to happen as a result of these new lending rules….
Toronto condo resales/pre-constrution and rentals are going to get very competitive and much much more expensive.
As reported in our most recent market report, Toronto condos (especially condos located in urban communities surrounding the Downtown Core) have appreciated aggressively as folks have been priced out of more expensive freehold products but this new change puts further pressure on the condo rental and re-sale market.
The days of saying “Consider a Townhouse instead of a semi” are over because Towns are usually just as expensive as semis and row houses unless they’re attached to some serious common elements with massive condo fees. So the conversation has now shifted to folks considering family sized condos instead of semi’s or towns.
Are you prepared to make those sacrifices to get on the property ladder? Or would you prefer to keep renting until you can afford the place of your dreams?