The prices of Pre Construction Condos in Toronto have been rising for years. Due to the lack of affordability and rising inflation, people do not usually consider buying inside Toronto and look for opportunities outside of the main city.
Areas surrounding Toronto such as Brampton, Mississauga, Vaughan, Kingston, London, Brantford have seen rampant increase in pre construction condos built and sold. Home buyers consider investing in such areas with the hope to receive maximum return on investment through increments in prices of properties year over year.
Until the full financial and economical effects of the pandemic in 2021 and 2022, pre construction home buyers enjoyed collecting profits on their home purchases and saw an astronomical increase in investments.
Although in 2022, the same buyers had to face small losses within months because of pandemic and disincentivized buyers with higher mortgage rates and raising prices of commodities everywhere.
Canadian Banking regulators speculate the prices of pre construction condos in toronto falling as low as 20% by the end of this year with the rollout of interest rate hike announcements.
The cities/areas that would be most suspectable to decrease in prices would be the ones furthest away from Toronto – namely Bancroft, Chatham Kent, Windsor-Essex and so on. The smallest decline in prices would be relatively close to Toronto – such as Thunder Bay, North York, Mississauga, Oakville, Sudbury and so on. (Source: Desjardins).
This makes a person wonder that whether this downfall could present an opportunity in disguise, and how can one capitalize on the biggest real estate market gap since the 2000s.
We believe that you should start searching for the perfect preconstruction condos in Toronto and the ones with the highest chance of generating ROI. A great source to begin your search is by comparing Pre Construction Properties in Canada using our Properties Page.
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