I can never repeat often enough that the best time to buy a condo is when the market has slowed down. It's what successful and wealthy real estate pros do: buy when others do not.
Here are some more arguments in favour of buying in Toronto's temporarily "slow" market:
- There remains a supply/demand imbalance for condo rentals, which makes it almost as competitive to rent a unit as it is to buy a home.
- It has reached the point where condo owners routinely ask for credit checks, job confirmation letters and proof of salary before a possible tenant will even be considered.
- There are still a lot of people coming to the city, combined with a shortage of places to rent.
- RioCan and Allied Properties know all about buying in a slower market, which is why they would pay $136 million for 6.5 acres of the former Globe and Mail office at Front and Spadina. If there was anything serious to worry about, big players like them would not have made the investment. Instead, they know Toronto is a terrific place to buy real estate.
- The continuing trend with employees is a "live, play, work" community, where they live in a central location and do not need to drive to work. Businesses are accommodating this by moving to central locations and agreeing to pay higher rent to attract these employees. This matches a similar trend in New York City.
Given these trends and the continuing confidence of big developers, you can expect Toronto to continue to be a great place to invest in condominiums and real estate. If anything, the slower market will provide even better investment opportunities in an already great city.