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The condo market in the Greater Toronto Area is undergoing a noticeable change as investors pull back and first-time purchasers begin to gain leverage. High borrowing costs, increased condo fees, taxes, and utilities are cutting into rental yields, making many investors reluctant or unable to carry their units profitably. As a result, some who bought at the 2021-22 peak are listing properties at losses.
With investor demand shrinking, supply is increasing, shifting bargaining power toward buyers. The article notes that average condo prices around $655,000, combined with mortgage payments comparable to average rents, are making ownership more accessible for first-timers—especially since they can now include conditions like financing and inspection in their offers rather than competing in bidding wars.
Despite this tilt toward buyer advantage, affordability remains a challenge. While owners entering now may benefit from relatively better conditions, many existing owners may face mortgage‐renewal shocks as rates remain elevated compared to the low‐rate period when they originally bought. The article advises cautious strategy, favouring resale condos over pre-construction, which face delays and higher cost risks.
Read the full article on: Global NEWS
