Top 3 Resale Condo Insights
The vast majority of condo sales in Toronto are resale condos. Suppose you take a moment and think about it that makes total sense. The other condo sale type is pre-construction sales. Did you know that resale condos now represent the majority of sales on MLS in Toronto? The popularity of condos in the downtown core has driven more developments and, ultimately, far more that come up for sale. In this post, we will explore the top 3 insights about Toronto resale condos!
1. Resale Condo Sales Drive The Entire Toronto Market Value
Just 15 years ago, a higher-end resale condo would sell for $400 a square foot. Nowadays, high-end resale condos will sell for a value 10x that, yes, $3500 per square foot in some cases. That being said, the average condo in downtown condo sells for between $1000-1100 a square foot. The vast majority of condos that sell on MLS are 500 square feet, which means that the average person lives in a condo of his size for about 3 years. Meaning the owner accrues value appreciation and moves on to their next purchase. Ultimately the value increases in the condo space push values of houses high and high over time. The growth in condo resale values has and will continue to drive the entire Toronto real estate market for years to come.
2. Resale Condos Are Top Priority For Investors
Ever since the economic crisis of 2008, interest rates have gone down, way down. There has been a major investment move made by what we call mom-and-pop investors into the condo space in the subsequent time. Verus, what we saw for years, which was institutional money going into apartment buildings. These individual or “mom-and-pop” investors own resale condo apartments that they rent out to workers in our city. Condo investments have been incredibly lucrative to those who have purchased over the years! We have helped many clients build their real estate portfolios over the years. You can, too, start here.
3. Resale Condos Are The New “First Home”
A first-time buyer’s “first home” is a little bit of a misnomer for many people purchasing real estate in Toronto. Nowadays, it’s more apt to say “first condo” as this is the most affordable option for first-time buyers in the city. Also, resale condos are cheaper per square foot than pre-construction condos by upwards of 20% right now. It’s no wonder that resale condos drive the first-time buyer market.
