When competition for residential properties becomes too intense, demand for condos will ramp up, says report If you own a condo that you’d like to sell, you already know the struggle to find committed buyers is real. You’re not alone. In May, the Greater Toronto Area saw a record high 8,183 condo units on the market, Engel & Völkers reports.
That surge underscores a significant shift in buyer preferences, with many prioritizing residential homes due to lower risks and fewer expenses than condos, it explains in its Mid-Year 2024 Canadian Luxury Real Estate Market Report. “Condos, traditionally entry-level homes for first-time buyers, are experiencing sluggish sales as potential buyers hold out for interest rate relief. The lack of competition for residential property classes is creating a situation where buyers who would typically purchase condos are now vying for residential homes,” it says in the report.
MARKET TO STABILIZE But when the competition for residential properties becomes too intense, Engel & Völkers expects competition for condos will once again ramp up. “As interest rates decrease, we expect the condo market to stabilize. Lower interest rates will enable first-time buyers to qualify for mortgages, making homeownership more accessible for them,” says Anita Springate-Reneaud of Engel & Völkers Toronto Central.
“As well, once buyers begin getting priced out of the residential home market, they will return to favouring condos. Currently, qualifie.