In today's economic climate, it is quite essential to be prudent and pragmatic when it comes to investing your hard earned money. One of the most promising areas to invest, especially if you do your homework right, is real estate. In the Greater Toronto Area, there is a market boom in condominiums. The GTA region is one of the largest condo markets in North America. In fact, Toronto has the highest number of ongoing condo projects in North America.
If you drive through the Toronto downtown area, you cannot miss the construction cranes and all the intense activity. You can see a lot of condo projects going on, which belies the economic downturn. Though the construction of condos seems to be growing at a frenetic pace, many industry experts feel that there will be no lessening of the demand. This is due to several projects failing due to various reasons like lack of financing and the state of the economy. So the industry consensus is that even though there is a lot of construction going on, the demand for condos will be sustained.
Many industry watchers feel that the inventory levels of new condos is still quite low when compared to the levels from the past. In fact, Toronto has been witnessing a steadily increasing demand for rental condos; the national average for rental condos is 20%, whereas it is 30% in Toronto. And for those who might think that this bubble is about to burst, experts say that the many factors which contribute towards a bubble bursting are significantly absent in the Toronto condo market.
Some of the factors which can result in a market crash like chronic over-development, many unsold condo units, a steep upward swing in the prices and unsound and unsafe mortgage practices are non-existent in the Toronto condo market. However, there is a slight downturn in the condominium market; but it is only a cyclical downswing and not a market crash. Soon enough there will be a revival, an upswing and the market will be thriving again.
There is ample proof that the Toronto condo market has not felt the ill-effects of the recession as much as the rest of Ontario has. Investors are attracted to the condo market in Toronto because the condo rental vacancies are significantly lower than the national averages. Another factor that will contribute towards the Toronto condo market regaining its upward swing is the lower interest rates for home loans; this will help to attract more buyers and so help in the recovery of the condo market. There is a general feeling that the Toronto condo market is a favoured destination for investors.
A recent survey has established this fact: that compared to 2008 when only 21% felt that buying a condo in Toronto was better, in 2012 the number has jumped to 44%. More than twice the number of people surveyed feel that the condo market has improved over the past four years. So you can rest assured that there is no danger of any bubble bursting in the condo market in Toronto. Things will be back to normal quite soon!