This article was contributed by Adam Linden, a realtor with Westview Realty here in Toronto. He has over 30 years’ experience in understanding and helping his clients navigate our dynamic condo market.
Anyone living in the GTA for the last several years has noticed a major change in our city skyline. Toronto has earned the reputation of being the condo capital of North America and for good reason. With detached home prices reaching the stratosphere and the lack of accessible land on which to build additional homes, people are looking at condominiums as an affordable way to get into the market.
Here’s a map created in 2014 showing the projected skyline by 2020. Red represents a proposed project, yellow is approved and for sale, and blue under construction. Some of those buildings are already completed. But the massive scale of the transformation is starkly apparent.
Having sold and leased several condos already this year what I can say is you’re going to need stamina to keep up in this market. I already advise my clients to plan on multiple offers for most if not all units, even within hours of the listings hitting MLS. Preemptive offers (a.k.a. bully offers) are also increasingly popular as highly desirable units are selling for considerably over asking price, after only a few days on the market (and sometimes only a few hours!). I see this trend continuing through the year as demand will continue to outpace supply. In this respect, the condo market is now starting to resemble the freehold market.
Historically known as a buyer’s market, the condo market in the GTA is now very much a seller’s market. I see this from Mississauga to downtown and out to the 905. As millennials, first-time buyers and anyone else determined to own property are priced out of freeholds, condos are now the last frontier in which to gain a foothold. And the sooner, the better: if you are hoping to buy a condo in the city, fasten your seat belt and get ready. Succeeding in this market requires the ability to wait patiently but also the reflexes to pounce when the right place becomes available. Work with a realtor who is an expert in this specific market, who will function as your coach and empower you to act with confidence.
Adam Linden has been working in the Toronto condo market with a boots on the ground point of view for over 30 years. If you have any questions about the market, he’d be happy to help you.