Recent statistics tell us that there has been a positive and encouraging change in the market. Plus, I know this cyclical industry well, and experience tells us it is going to come back in full force. The numbers show that we have achieved the first step. For example, the recent government announcement of the HST rebate is great news for those who qualify. Many developers are factoring it into the up-front price as we await federal approval and specifics from the government. And with price and location still the strongest incentives to owning a home, this is substantial. In addition, according to the Building Industry and Land Development Association, in April, new home sales were 1,100, which is triple from a year ago.

One step at a time

Another thing to consider is the fact that new home sales typically follow behind trends in resale, and recently the Toronto Regional Real Estate Board released some fascinating information. In April, 1,054 resale condominiums were sold in Toronto – a 14.4-per-cent increase year over year. It may seem small, but one step at a time holds here. And as the market evolves once again, developers realize they must gear units more to end users, which is a real benefit. As an end user, shop wisely, ask about such things as incentives and upgrades.

The investor market is even coming back, but these buyers are not the mom-and-pop investors of yesteryear. We are seeing wealthy families and business partnerships buying up condo suites in bulk to hold until the standing inventory is sold and prices start to go up again because of scarcity. They realize that there has never been a better time to buy and get your foot in the door of homeownership.

Borrowing costs are lower in many cases, and so are prices. The benefits of buying new never change: Tarion Warranty, ability to select your features and finishes, amazing and beautiful building amenities, proximity to public transportation and local amenities. And today’s condos are more sustainable than ever before, constructed with the most advanced materials and techniques required by Ontario Building Code. Condos also come with built-in security measures, including the eyes-on-the-street concierge – a comfort especially to single women and families. Essentially a vertical community where residents get to know each other in elevators, hallways, amenity spaces and other common areas, condominiums offer safety on that level too. There are always neighbours close by who can water your plants after you lock the door and leave on holiday without worrying about lawn maintenance and the like.

Constant appeal

Economies may change, but the appeal of the condo remains constant, especially to immigrants. Nowadays, we are seeing how critical condominiums are in producing much-needed rental stock across Toronto and the GTA. This also means there is a massive pent-up demand for condos for purchase. Savvy purchasers are buying now and are waiting out the current cycle.

And a cycle, it is. Our population will continue to grow, and people will always need places to live. Owning a home has long been the goal of Canadians and immigrants to our great country. History has shown that investing in a home – be it a lowrise house or condominium suite – can be lucrative in the long run. In the meantime, it provides owners with equity that can be funneled into other needs. As opposed to paying rent, the money you spend on paying a mortgage is going toward your future. But aside from financial possibilities, homeownership comes with a wealth of psychological and emotional benefits that contribute to our wellbeing, such as a sense of permanency and a visual symbol of achievement.

If you are a potential purchaser waiting on the sidelines to see what happens, do your “homework” to prepare. Get pre-approved for a mortgage; read the Canada Mortgage and Housing Corp. documents online about buying a new home or condo; find a lawyer who is familiar with the kind of new home you want to buy; check on insurance to understand how a condo is insured, as opposed to a lowrise home. And do some research into Canadian real estate cycles over the decade. I remember financial experts in the 1980s saying we would never see single-digit mortgage rates again, and… Look at us now. Cautious optimism may be the phrase of the day, but buy new and buy now is always good advice.