We really wanted to name this post “Condominium Apartment Prices Set a New Record in September!” But, because of the less-than-optimistic tone of most real estate news and blog posts, we decided against it. We figured everyone would think we were just trying to grab readers with our own version of ‘fake real estate news’.
But, this is as real as it gets. The price of condominium apartments hit an all-time high across Toronto and the GTA in September. The average price of a condo in the GTA is now $506,300.
Here’s a listing of average condo apartment prices from across York Region for September 2018 (as reported by the Toronto Real Estate Board).
Markham – $525,993
Richmond Hill – $450,363
Vaughan – $492,859
There is a noticeable difference in the price performance of condos versus all types of housing. While condo prices increased across the GTA by 10.1% versus a year ago, the average price for homes of all types increased only 2.9%. Just in case you think that’s only a difference of some percentage points, it’s really a difference of over 300%.
Why Are Condominium Apartment Prices Doing So Well?
For many years, condo apartment prices had the opposite relationship to overall real estate prices. Price increases were often not as large for condominiums, and price decreases were often felt sooner in the condo market.
But the recent record run of home prices across the GTA has changed all that. As one of the most affordable investments in real estate, the popularity of condos has increased for many reasons.
A Great Way for First-Time Buyers to Get Into the Housing Market – The new mortgage stress test rules that came into effect earlier this year mean that home buyers may not be able to borrow as much as before. Lower overall prices for condos versus other types of housing make it easier to qualify for the new rules. First time home buyers generally don’t have the same buying power as those who are already invested in the market. That combination makes condos a popular choice for those who want to own build equity in their own home versus renting with no equity to show for it.
Condos Are a Popular Way to Downsize – More and more Baby Boomers are becoming empty-nesters and no longer need large homes. They appreciate the lower day-to-day maintenance requirements of condos versus bigger houses and yards. Perhaps most attractive of all are the amenities offered in many condominium buildings, including exercise rooms, pools and recreational spaces, like rooftop terraces.
They are Good Investment Properties – For those who want to own an investment property, condos are an attractive option. Easier maintenance means there are fewer upkeep headaches, including no need to worry about things like landscaping, leaky basements, and roofing issues.
To top it all off, Markham, Richmond Hill, Vaughan and all of York Region are seeing an increase in the number of new, very attractive condominium projects. That means more options throughout the region for condo buyers regardless of why they want to buy. If you would like to learn more about buying a condominium apartment anywhere in York region, contact The Tar Team today.