In the last several months, inventory has shifted substantially. I don’t remember the last time buyers had much choice when it came to buying a condo. Resale and pre-construction options were selling out fast. It’s been a sellers’ market for as long as I can remember, and mortgage rates were slowly on the rise pre-COVID.

Now, however, buyers are able to take their time, as there is an abundance of inventory to choose from.

Window of opportunity

In the resale market, prices are slowly beginning to decrease, which is not such a bad thing for buyers, as declining prices present a window of opportunity for those who may have been waiting on the sidelines. Interest rates, meanwhile, continue to be favourably low.

Two types of buyers are emerging in the market. One who has a down payment and pre-approval in place and can finally go shopping for a resale condo. The other does not have the full down payment or might need to save more – in which case, pre-construction might be the way to go. The stress test is still in full effect, so even with the low interest rate environment, qualification can be challenging.

Now that we are experiencing a “stay in” mentality, there are a few different factors to consider. These include small units that feel very cramped, longer delays for buyers that purchased pre-construction and did not yet close, communities that were attractive but have now shifted to accommodate a work-from-home lifestyle. Prior to the pandemic, small condos were not an issue for many buyers, and builders were designing smaller units to accommodate affordability. It’s one thing to have a small dwelling and make it work, but when life changes so drastically and we are now staying in much of the time, a 490-sq.-ft. condo starts to feel really small.

Fuelled by motivation

If you purchased a pre-construction condo and you were supposed to close, you might be dealing with delays, as well. The upside is that interest rates are low, so you can lock in a rate for a few months at a time. This also gives you more time to put some money aside.

In the past few months, I have noticed a shift in where buyers want to live. Before the pandemic, downtown Toronto’s financial district was extremely attractive. When companies started sending people home, however, things changed. After experiencing a shutdown and working from home, people began to appreciate what we had. Areas such as Toronto’s King West were desirable, but living in an area where there is a community feel is increasingly at the forefront.

Overall, people are still buying and selling; real estate is always fuelled by motivation, and there is no lack of it now. There is a little more uncertainty, but that is normal, considering what we are all going through.

Despite these challenges, for people who have been sitting on the sidelines, now really is a good time to buy. Pre-construction condos are still selling. It just depends on individuals and their respective positions.