by Nutan Brown
on Monday, January 18th, 2021 at 10:37am.
It's no surprise that the condo market was hit the hardest last year due to the pandemic. With stay at home orders in effect and social distancing required, homeowners shifted their attention to larger lots and bigger homes causing a significant decline in condo sales. But that doesn’t mean the demand for condos is gone forever.
Which is why some people have been asking; are condos a good investment?
Shift In Demand
In the first quarter of 2020, condo price increases were outpacing single detached houses. New condo prices in Toronto were up 14.6% over the previous year while resale prices had increased by 8.5%.
Current data shows a different story. While condo prices are up year over year – month over month, price growth is not as strong.
Although the condo market is weak during this time, that doesn't mean it won't rebound. Market experts find it unlikely that people will stay away from condos for the long term. The condo market could quickly rebound back to early 2020 numbers following the pandemic, as people return to offices and amenities reopen.
While condo demand is predicted to return once the pandemic is over, that doesn't necessarily mean it's a good investment for you. Each situation is different, and the answer depends on many factors including your financial situation, shifts in the market, and other varying factors.
If you are thinking of investing in a condo this year, feel free to contact me for some professional advice and guidance. I can help you determine if it is the right move for you!