Why Now Is a Good Time to Buy a Condo in Toronto

The first quarter condo numbers are out, and with the details now clear, I can say with confidence that these are good days to buy a condo in Toronto. About 5,000 condos sold in the first quarter of 2024, more than the same period in 2023, and year over year sales growth was above 5 percent. I am Moe Asgarian, a senior real estate broker in Toronto, ranked number 47 at RE/MAX, and I want to walk through the Q1 numbers and why now can be a good time to buy.

What the first quarter numbers show

Beyond the sales growth, listings really climbed, 23 percent more than January, February, and March of 2023. More new condos came to market, which means buyers have more options and, most importantly, the average condo price came down. These are official figures from the Toronto Regional Real Estate Board in its latest report on the first quarter.

Renters waiting on the sidelines

The report stresses that many people who currently rent condos are waiting for the first rate cut to start buying, and we are about to see a meaningful number of first time condo buyers come into the market. There is also a jump in rental transactions: the total number of rental apartment deals rose about 22 percent over last year, to roughly 13,000 transactions.

Where rents and prices landed

If you want to know how much average one bedroom condo rent in Toronto rose compared to Q1 last year, it went up 1.2 percent to 2,440 dollars. Two bedroom rent did not change and stayed at 3,139 dollars, so rents did not move much. The point I want you to focus on is that the average condo price came down year over year, both across the GTA and in the City of Toronto, though the city saw a smaller drop. TRREB expects more first time buyers to enter gradually, with the effect showing up later this year and early next year. One reason rental deals rose is that sellers who cannot get the price they want switch strategy and list the unit for rent instead. I see a lot of condos right now listed both for sale and for rent, a sign the seller has a number in mind and will pivot to renting if they cannot get it.

Why this is a window to buy

So why can now be a good time to buy? Pre construction and pre sale projects are not busy and are going through a quiet stretch, and the reason is clear: rates are high. But the hope is that rates come down, and the moment they do, many people are expected to buy condos. So if you want to invest, now is a good time to enter while condos are selling at reasonable, lower prices. In this setup you should be well positioned to benefit from future price growth. Many economists call this an open window, a good chance to make a move. Just keep in mind that beyond rates and financing, other factors matter, above all the builder and the overall quality of the project.

A recent client story

Let me share an experience from a few days ago, buying a condo at Adelaide and Peter in downtown Toronto. A client called who had not had a good experience with their previous agent. After we met and talked, they decided to continue with me. They wanted a corner unit with a south view. Thank God, within three weeks we narrowed down the neighbourhoods and found a condo that fit their needs and was well priced. We bought it for 30,000 dollars below a comparable unit in the same building that had sold two or three weeks earlier. If you want to use these days to find opportunities like this, or you have something to sell or want to move up to a bigger condo, reach out and I can help you make a better decision. Stay well and take care.