Why 2023 Is a Buyer’s Market for Investors in Toronto
25,000 condo units are ready to hit the Toronto real estate market this year, according to Urbanation. However, a recent revision sees this number down nearly 6,600 units from the previously reported 32,000 units expected. This number still beats the previous high of 22,473 units completed in 2020. Yet, 25,406 units are still insufficient to keep up with the demand of homes needed annually.
This inflow of condos comes at a time when interest rates have reached what seems to be an all-time high – which is not the case – intimidating investors waiting on the sideline from entering the market. With high-interest rates causing high mortgage borrowing costs, the city is now seeing a drop in sales and home prices, leaving many to wonder what this could mean for investors. You may be surprised that now is the best investment time. The reason is: We are in a buyer’s market.
Right now is the time to buy a pre-construction, assignment or resale condo – depending on your investment goals. As sales are low, the price of homes is also low, meaning this is an investor’s opportunity to dive in and seize a good deal. After all, Warren Buffet, one of the most successful investors of our time, once said it is wise to be “Fearful when others are greedy, and greedy when others are fearful.”
The Bank of Canada raised interest rates to 4.5% to help solve inflation and cool the market. But as we mentioned, the demand for homes will continue to grow over the next decade. At the same time, Canadians are trying to qualify for mortgages with five-year interest rates nearing 5%, but this should not deter investors from entering the market. As we know, investing in a pre-construction condo should be a long-term investment, not a short one. If you look at interest rates over the last five years, you would think they are at the highest they’ve ever been.
READ MORE: https://www.gta-homes.com/real-insights/news/why-2023-is-a-buyers-market-for-investors-in-toronto/
