This post is related to my previous one in regards to people's buying intentions within the next 5 years . We have seen that mostly younger Canadians in the 18-39 year-old range are planning on buying. In case you are considering making renovations to your home with the intenT to sell within the next 5 years, choose the renovations according to the taste and requirements of the new generation. i will shortly write a blog about the new generation's expectations .
What do you think -- are these young Canadians going to buy more Condos ??? What about empty-nesters and the aging population? I strongly believe so because condos will be the most affordable option for young people's income and especially for first time buyers. Also, with rapidly increasing prices of houses these days, the aging population sells their existing houses, helps their off-springs with the down-payment and moves into a condo .
Recent reports show that condo sales were up 9% in the first 3 months of this year and condo prices were up 5.6% in the same period (1). This increase is expected to continue for the remainder of the year. Developers are positive that confidence has returned to the condo market, as 2,721 new units have been sold in January and February 2014 alone, which exceeds 2,394 units sold in 2011, the record year for condo sales (2). Rents will decline for a bit because of lots of condo projects coming to completion this year. Although rents will decline, investors will be still interested in condos because they believe in capital appreciation. In the first quarter of 2014, 1 bedroom units rent was down by 1.6% to an average of $1,573 and 2 bedroom units rent was up by 1.9% to an average rent of $2,155 (3) .
So far in the condo market we are certainly in a buyers’ market. Developers offer a lot of incentives in order to try to clear their inventory of 23,327 unsold (2). This is a good time when we, as agents, can negotiate very good deals with the developers for our clients.
What do you think about the Condo market in 2014 ? Please leave your comments below.
(1) TREB - Q1 - Condo Market Statistics http://communications3.torontomls.net/newstand/news/2014/mn1404/pdf/nr_condo_report_Q1-2014.pdf
(2) Susan Pigg Business Reporter, Published on Tue Apr 9
(3) TREB - Q1 - Rental Market Statistics