Condo Chicks from Stomp Realty Inc., Brokerage (www.CondoChicks.com), a team of realtors behind some of Toronto’s most prestigious condominium sales, is commenting on a new report about trends among first-time buyers in Toronto real estate. —
According to a recent report in The Globe and Mail, the prices of low-rise houses in Vancouver and Toronto have soared to all-time highs. However, the condo market is now considered more affordable than ever before. With stricter federal mortgage rules, first-time buyers have been transitioning from buying homes to buying condos. (Source: McMahon, T., “As detached home prices soar, first-time buyers turn to condos,” The Globe and Mail web site, February 29, 2016; http://www.theglobeandmail.com/report-on-business/economy/housing/house-prices-soar-but-condos-becoming-more-affordable/article28957142/.)
“Condos are more popular than ever before, especially with first-time buyers,” says Erica Smith, broker of record and founder of Condo Chicks. “Buying a house used to be the first step for young couples and families, but recently, buying a condo has begun to be the ‘new normal.’”
The increase in the popularity of condos is being attributed to the high number of condo developments being built in Toronto and Vancouver. High rates of condo construction have helped keep prices low compared to houses.
“Toronto really is one of the prime real estate destinations in North America, as is Vancouver,” says Smith. “The reason so many condos are being constructed is because there is just that much demand. At this point, there are condos in nearly every neighbourhood in Toronto.”
In fact, not only is buying a condo cheaper than buying a house, but statistics show that condos are becoming more affordable than they have been in the past. The amount of pre-tax income required for a condo mortgage payment has declined by seven percent since last year, meaning condo prices are actually more affordable than before.
“Condos used to be a luxury option,” notes Smith. “Now, you’re seeing condos being bought by everyone from singles and young couples to seniors who are downsizing. In this real estate market, it’s rare for property to become more affordable compared to people’s income, so there really hasn’t been a better time to buy a condo.”
The affordability of condos flies in the face of the standard view that housing is more expensive than ever in the Canadian market. In fact, in some cities, the average condo mortgage payment is lower than the average monthly rent.
“There hasn’t been a better time to buy a condo,” says Smith. “There’s been a bit of a transition now, with houses becoming the premium option in the Toronto market. They can still be a great choice for some buyers, but they’re sometimes not ideal for first-time buyers who want to step into the market.”
Smith says that first-time buyers should carefully consider their income, the value of property, and the real estate market before committing to any deals.
“There are plenty of options for buyers on any budget,” she says. “If you work with a real estate professional and do your research, you can find the right property that works for you.”
Condo Chicks from Stomp Realty Inc. is a dedicated team of realtors who are behind some of the most prestigious and prominent condominium sales in the Greater Toronto Area. More information can be found at www.CondoChicks.com.
Name: Erica Mary Smith, Broker of Record and Co-Founder of Stomp Realty Inc., Brokerage
Email: Send Email
Organization: Condo Chicks Inc.
Address: 163 Sterling Rd #10 Toronto, Ontario M6K 2B2
Release ID: 107126