A Sigh of Relief for the First-Time Condo Buyers in Toronto
Wednesday Jan 20th, 2021
A Sigh of Relief for the First-Time Condo Buyers in Toronto
COVID-19 has taken a toll on all our life, beginning from work to future planning. The pandemic has posed a challenge in the sector of real estate, including condos and lofts for sale. Bringing up the prices or dramatically decreasing the mortgage rates has brought in both opportunities and challenges, especially for the first-time home buyers.
As the pandemic situation is getting stabilized, considering the financial situation you are currently in, it can help you determine if you are good enough to take that big step. When the economic downfall occurred, the sales happened in very few numbers compared to the figures before the pandemic. Now that people are getting their life back to normal, the real estate market returns to its normal state. Now the question is, “Should you be buying now?”
Entry-level buyers vs. Secondary buyers
Those buyers looking up for entry-level condos find it easy to get condos at affordable prices or get some of the affordable renting condo spaces. But, this is not the condition with those buyers who once lived in rented spaces.
Since the markets in suburban areas have gone too far away from the once-affordable range, it is difficult for those trying to settle onto a cozy condo space. This is not the case with regular or secondary buyers, though. The most challenging are the ones who are looking for their first-ever own home.
Since the pandemic, digitalization has boomed in the real estate sector. By technologies like 360 or 3D virtual tours, the agents can show the condos to the buyers through an online network. Also, e-signatures and remote closings are facilitating less time consumption and offering smoother transactions. This implies that all those first-time buyers should see this as an opportunity to buy themselves a home. You do not have to make regular rounds to get this done.
Even though there was a significant price hike in the Toronto condos for sale, the number of sales over the year increased. A survey found that the sales increased by a rate of 30 percent by the third quarter of 2020. Suburban sales rocketed at a faster pace than city condo sales.
According to research, the prices have gone down substantially after there was a hike in the prices. In 2009, 885 condo units were sold, but after a significant price hike by the second quarter of 2020, the prices saw a rocket fall. By the end of 2020, almost 1385 condo units got sold out under Toronto Condos Sale.
They have also said that there will be an improvement in the Condos for sale in Toronto by July 2021 as there will be new Condo launches. Also, since the real estate market's stability is gaining its position composedly, the fall in the statistics will slowly tend to go up in terms of the number of Condos being sold.
Real estate is one of Canada's largest economic sectors and could never really get a blow due to the pandemic. The Canadian government decided to lower the interest rate in banks so that people could still purchase condos or lofts. As part of this government decision, the Bank of Canada reduced the rate to 1.25%, straight from 1.75%. The bank officials claimed that the reduced rate influenced people to buy homes. This has ensured the new buyers to roll up their sleeves and get into the field of real estate.
What do the Government and Association say?
The Government of Canada brought in many incentives at the pandemic to avoid an economic shutdown. One among them was the First-Time Home Buyer Incentive that allowed those buyers who qualified the norms put forth to get a second mortgage on the property. The government sets up a fixed sale for resale as well as newly constructed condos. This loan does not need any regular payments, and is also interest-free.
Another one of the incentives is that of the First time Home Buyers’ Plan. It is for people with disabilities or allows people to use their retirement savings plan to buy a home for themselves. The repayment period can be upto 15 years for this particular program.
It has been further brought into light that buyers who already have experience in the real estate market find themselves on a better plate financially; thus, giving them the chance to grab the opportunities to secure the best living condo they need. They also find themselves at an advantage in buying the condos even when the prices have hiked.
Now that the rates have decreased, people are finding more opportunities to buy their dream condo homes in the Greater Toronto Areas (GTA). But young people find it challenging to make the down payment to the dot. However, once they pay, the interest rate is low, and it is not considered anywhere near expensive. The Government of Toronto has further stated that they would do the necessary measures to ensure that even the young people who are first-time buyers can buy condos in Toronto.
By the announcement of schools being reopened by January, many parents started looking out for more spacious condos and lofts for sale in Toronto that could give the family a sense of satisfaction. By November 2020, it became evident that people started to buy and sell homes for many reasons, including the physical space expansion to accustom to work from home jobs. Everyone used to prefer city condos due to their vivid range of life, including festivities and nightlife, and for their children, a better interactive area. But since the pandemic hit, people are questioning why they should restrict themselves to small area condos.
Usually, in such situations, people tend to wait before approaching a realtor. Why? Because buying condos or lofts for a living is a huge investment and commitment. But in all truth, we could say that if you are willing, then go for the purchase because, especially at the time of the pandemic, the number of buyers would be significantly less. Also, the sellers will be accepting the bargain price.
As per survey results from various sources, it is evident that these cases will be diminishing soon and that even first-time buyers, let it be old or young people, can get their Toronto Condos within their budget range.
Nevertheless, the Toronto Condo Team can help you get the best house at the most affordable rates. Even with the pandemic swing happening, the team can still bring opportunities that fit well within your budget if you are a new buyer to buy Toronto Condos.