With a global pandemic forcing all of us to make big changes in our lives, it’s no surprise that many people are rethinking their living situations. 2020 saw many people leaving the city core for the suburban lifestyle. However, the market is starting to shift, and it’s shifting fast.
Perhaps you’re someone who lives alone, or with only one other person. Maybe the kids have left the nest and you’re left feeling like you have all this house with no one to fill it (especially with social distancing rules in place). With more space comes higher maintenance – so is it time for a change?
If you’re feeling overburdened by the maintenance or cost of your home, or the house you’re living in just isn’t fitting your needs anymore, it may be time to consider downsizing, and the condo market is where to look right now!
Is Downsizing Right for You?
There are a number of reasons why someone might choose to downsize. Here are some of the benefits:
- By selling your current home, you may be able to purchase a smaller space such as a condo with the money you made in the sale, and will likely have money leftover for other things. If you’re paying a smaller mortgage, that will also give you increased cash flow.
- A smaller space means less time spent on cleaning and maintenance (especially with a condo, as you’re not spending time cutting grass or removing snow). This gives you extra free time in your days!
- The cost of utilities in a smaller space is significantly less, which will save you money each month (and is also better for the environment due to less energy being used!).
- Another way that downsizing can save you money that you may not have thought about? Consumption. If you don’t have the space for it, you will be less likely to buy it. That means more money for savings or other enjoyable things!
- This may be the best thing about downsizing: all of these things combined contributes to less stress in your life! Say goodbye to that overwhelming feeling and hello to freedom!
Why Now is the Perfect Time to Sell Your House and Buy a Condo
So you’ve decided that downsizing is the right move for you. Now what? If I can offer you my advice, you’re going to want to look into the Toronto condo market, and now is the time to do it!
The pandemic brought with it some troubles for the Toronto condo market. Things slowed down significantly throughout 2020 as people fled from the city to seek out more space. That being said, things picked up significantly in December, with the week of December 20th showing a 72% increase in condo sales in a year-over-year comparison. Speculation is that this jump in sales occurred because of the announcement of the vaccine. With an end to the pandemic in sight, people are jumping back into the urban market.
With that being said, condo prices are still down about 10% and haven’t caught up yet with the jump in sales. In addition, mortgage rates are well below 2%. It is unlikely we will see such affordable prices for downtown condos again, which is why I would suggest taking advantage of this opportunity.
With this growing affordability advantage for condos over detached homes, it is likely we will see a boost in demand this year. While it’s difficult to say when prices will catch up with demand, It is predicted that the spring market will bring a lot of heat to the condo market. The discount in prices and interest rates will likely drive people to the market like we’ve never seen before. Post-COVID will likely bring the resumption of population growth and will also drive demand in the condo market.
I say why not get ahead of everyone else? A drive in demand means less inventory and the likelihood of pesky bidding wars. If you’re ready to make your move from house to condo and don’t want to risk dealing with the stress of the upcoming spring market, give me a call or text at 416-903-7653 or email me at email@example.com