Will Condo Prices Drop in Toronto in 2018?

The detached home market was on fire for several years up until April 2017. Many buyers might be wondering if the condo market is headed in the same direction as the detached home market. The big question is “Will condo prices drop in Toronto in 2018?”

In this post, we reveal what’s happening in the real estate market in 2018 and why. We also provide a few tips for prospective buyers to help make the purchasing process a little smoother.

The Detached Home Market Trend

Up until April of last year, the detached home market was hot! Open houses were packed and properties were selling with multiple offers on offer night. Buyers felt like they won the lottery when they secured a home.

Then, one day in April, it all changed. It was like someone turned off the faucet. Buyers went away and homes just sat on the market. Prices in many neighbourhoods dropped drastically. Sellers that needed to sell (if they’d already purchased another home) sold at a much lower price than their neighbours had sold for.

So Will Condo Prices Drop in Toronto in 2018?

When it comes to the condo market, we’ve seen a different pattern. Currently, many condos in the Toronto area are now selling with multiple offers on offer night, similar to detached homes a year or so ago.

Buyers are lined up to purchase the units and it’s not unusual to have ten offers on a condo on offer night. Each condo that sells seems to be selling at a higher price than an identical unit sold for only weeks prior. So what’s driving this insanity? Well, condo prices have continued to rise in the first quarter of 2018 for several reasons.

Toronto is a city with a vibrant downtown and is an attractive location for many buyers and investors.
Condos are still somewhat affordable for first-time buyers. Detached home prices were on the rise for over ten years, so even though they have dipped in price, they are still out of reach for many buyers.
Many condo-seekers are feeling that they need to jump in now or miss out entirely on home ownership as prices continue to rise.
Interest rates are set to rise, so buyers are keen to jump in before mortgage rates increase.

We all know the answer to will condo prices drop and it is that prices will not continue to rise forever. At some point, condo prices will stabilize. Is that going to happen anytime soon? No one really knows for sure.

Our Advice to Condo Buyers in Etobicoke

If you’re thinking about buying a condo soon, we’ve got some simple tips to help you make the right decision.

Buy what you can afford when the timing is right for you.
Buy real estate with a long-term view, not as a short-term investment.
Don’t try to time the market. As history has shown us, it’s impossible to do.

We’re always available to start a conversation to help guide you through the buying process. Just contact the ThompsonSells team and we’ll help you every step of the way.