First-Time Home-Buyers Face Difficulties in the Downtown Toronto Condo Market

By: Reza Afshar

First-Time Home-Buyers Face Difficulties in the Downtown Toronto Condo Market

Tags: First Time Toronto Condo Buyer, Tips for first time home buyers, Downtown Toronto Spring Condo Market

Spring is here: Get a Fresh Start in a Downtown Toronto Condo
 
Spring, what’s not to love? 
 
The cold Toronto winter subsides, giving way to the fresh smell of growth, longer days and brighter sunshine. We all love spring, but if you’re a first-time home-buyer looking to purchase a condo in downtown Toronto, then spring is not really the easiest of buying seasons.
 
‘Tis the season…for Condo purchasing
 
Now that we are into March, we in fact find ourselves in an intense season for home-buyers in downtown Toronto. And this is especially the case when it comes to condos.
Spring is the season of rebirth and renewal. The spring season, when it comes to real estate, actually begins in January. The new year provides, like spring itself, a renewed sense of optimism for home-buyers who began their search in the fall, but were, for whatever reason, unsuccessful in acquiring a place. They now return to the market, rejuvenated, more educated and more intent on finding their new home in time for the actual spring season.
 
The Competition
 
At the same time, new buyers are also entering the market with a similar plan to purchase in time to move in the spring or early summer. They however come less seasoned than the buyers who began their search in the fall, and those seasoned buyers are the ones who are usually able to get the first few home purchases of the year complete. They are tired of the search, and are able to out-bid those new buyers who haven’t yet figured out how the market really works.
But both groups – whether seasoned or new – face the truth of a limited supply of properties. The competition is therefore fierce for downtown Toronto spring condos. Having experience with the market’s dynamics, the pricing and the purchasing process is important when competing in Toronto Condo bids. Whether you learn it by making several attempts, or having an experienced agent to guide you through the process, there are definitely some steps you can take to make sure you have an advantage over other buyers. 
 
With the experience of more than 800 real estate transactions under his belt and being a first-time home buyer expert, Reza Afshar knows the Toronto condo market inside and out and knows what it takes to purchase a condo in Toronto without overpaying. 
 
Condo Prices…where are they heading?
 
With the BILD report for January revealing that the average price of a condo in downtown Toronto is more than $800K, we find prices are particularly high for first-time buyers. Expecting first-time buyers’ budgets to be around the $400K mark, entering the downtown Toronto condo market makes things even more difficult.
 
Combat the Reality
 
Make a Wish List
 
With so many different buildings and pockets to choose from in Downtown Toronto, knowing your criteria by having a list of your must haves and your dream features can go a long way to keep you focused. Knowing what is important to you, will help you navigate clearly and make sure that you target condos that fit what you are looking for. By sharing this list with your realtor, will also help them understand your vision for your first home and allow them to show you properties in similar areas you may not have considered but still checks all you boxes.
 
Prequalification
 
Having financing in place is crucial for a seller to even consider your offer. Making an offer conditional on getting the finances to purchase is definitely a disadvantage but not impossible. The key is to have a condition with the shortest amount of days as possible or to guarantee the banks approval before the offer date to know you are secure and present a stronger offer. Another way to increase your purchasing power is to extend the amortization length from a typical 25 year agreement to a 30 year one. This will lower the monthly cost of your mortgage, making it more manageable. The interest will increase, but in almost all cases, your first home is likely not to be your last. Really, it will be a shorter-termed home, used as a step to something grander, so you won’t really be paying off your home anyways.
 
 
For more tips to help you buy with confidence,  speak with a real estate agent who is a leader in the downtown Toronto condo market. Having the knowledge and experience on your side from the get-go will allow you to navigate the fiercely competitive spring real estate market. 
 
Reza Afshar is that leader and expert who can take you through your first home purchase with ease and confidence. He’s been around since the beginning of the Toronto housing boom in 2002, and has remained a top sales agent in the market ever since. Contact Reza here.