In a July 11 interview with Breakfast Television Toronto
, condo investing expert Andrew la Fleur said that doomsayers’ scenarios of a bust in the condo boom do not hold up to scrutiny.
“In the low-rise market, prices are up 10 to 15 per cent. We’re seeing similar numbers now in the condo market. Basically the big story is, supply is down and demand is up,” la Fleur said.
The TrueCondos.com founder cited June 2016 figures from the Toronto Real Estate Board, which showed sales volume last month going up by 36 per cent and listings available for purchase declining by 26 per cent.
“It’s this imbalance in the market that’s driving prices up,” he stated.
La Fleur pointed at two current examples that highlighted this growing trend: A Liberty Village condo that sold for $585,000 in 2013 was recently purchased for $730,000, and a Simcoe Street unit that sold in multiple offers for $705,000 (its previous sale price in 2013 was $573,000).
“Condos downtown are selling very quickly, especially larger units. We’re finding that these are very much in demand.”
“Anything on Young Street is always a good thing. King West is very, very hot right now. Liberty Village area, [as well],” la Fleur added. “The East side of downtown is really starting to emerge. It has been a ‘value’ sort of area, but now it’s starting to catch up to the West side as well.”
“Stick to the fundamentals when you’re investing. So with the downtown Relief Line looking like it’s a very real possibility in the near future, a lot of interest is now popping up on the East side,” he concluded.
CMHC releases additional foreign ownership data
Good equity can help in a pinch—DLC
Are you looking to invest in property? If you like, we can get one of our mortgage experts to tell you exactly how much you can afford to borrow, which is the best mortgage for you or how much they could save you right now if you have an existing mortgage. Click here to get help choosing the best mortgage rate
Investment Hot Spots:
Whynotts Settlement, Windermere, Balmoral, Estevan, East Broughton
Despite the sobering tales of continuous price growth across all types of housing, an industry guru maintained that Toronto condos remain viable investments for those looking to augment their household incomes.