Condos have been incredibly resilient, we expect that the new highs of 2019 will beget even higher highs in 2020. So yes, we believe that 2020 will be another excellent year for condo investors. Whether that be investors entering the market or those who have been reaping the rewards of a strong Toronto condo real estate market for the past decade.
It’s not uncommon to hear naysayers speak of a “bubble” or another common quip is that there are too many condos in Toronto. This is a cognitive bias that dates back to a time in Toronto when condos were exceptionally rare. That day has come and gone. Families are now being raised in condos; it’s no longer a retiree preference.
We have written a great deal about the need for Toronto to add more condo units to the market with the growing population. Toronto is far behind the demand for living space – both owners and renters alike. The growing segment is certainly renters as the cost to acquire a home or condo is far and above the average person’s salary in Toronto.
Average Condo Costs in Toronto
The average 1 bedroom condo rental in Toronto is nearly $2,500. We can assure you that this is higher for new condo buildings in desirable areas. Most of these condos are 550 square feet.
We have every expectation that rental values will increase in 2020, our investors will be happy to hear this. As for pricing, this too is expected to increase. 2019 was a year that saw an increase of 5.62% for the year in our key market areas.
Condo Investment Predictions in 2020
We expect condo investments in 2020 to perform at a similar rate or better than we saw in 2019. There was a spike in buyer interest in the Fall, and this will translate to more demand in 2020. Part of the reason we saw a spike in buyer activity is that mortgage rules and rates were adjusted to favour buyers – i.e., it is now easier to purchase than it was to kick up 2019.
We work with many condo investors. It’s a passion of ours. We strongly believe in serving each and every buyer’s specific needs. We help you get the best possible option for your money. We balance your needs, goals, and what the market has to offer in terms of price, investor upside, options that are overlooked by other agents and neighbourhoods that are ready to track upwards at a rate far exceeding adjacent areas.
Contact Us Today!
Contact us – let’s chat about your investment goals and how we can make 2020 a successful year! (and the years to come all the more financially successful!)