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Realtors Looking at Strong Market for Condos
The market for condos in North America’s hottest cities is heating up as housing becomes scarce. The low Canadian dollar is making all Vancouver and Toronto properties an attractive investment but condos are the hidden gem for investors. The market in San Diego too is also being driven by a lack of housing stock.
3 Cities Primed for More Price Growth
Vancouver is loaded with condos and Toronto has seen a huge growth in new condo developments in the last 5 years. San Diego’s condo market is poised for astonishing growth.
As this graphic highlights, the great recession barely affected rocketing prices in Vancouver since 2002. There is no more land in Vancouver which means the sky is the limit in Canada’s top city.
Explosive growth in the Canadian market is fueled by Chinese, Middle Eastern and US buyers. Vancouver is the main target of wealthy Chinese buyers. The strong Yuan and weak Loonie means Chinese millionaires are finding plenty of bargains to move into or to use as investments. Many of the units are sitting vacant but don’t expect to see them on AirBnb.
Toronto Sales Volume Rising Fast
Toronto’s condo sales volume grew 10% in August in the city and 23% in the region just outside Toronto. No housing bubble is forecast for Toronto.
BILD CEO Bryan Tuckey says many potential first-time buyers are being priced out of the market. He says there’s a limited supply of new houses because of a lack of development-ready, serviced land across the region, which means “homes are being purchased faster than they can be brought to market.”
Foreign Buyers Helping to Drive up Prices in San Diego
San Diego’s real estate revival is in progress. Realtors are just getting positioned for the coming boom. The graphic below from Jorge Castelon of Harcourts Pacific Realty in San Diego reveals the upward trend.
That’s an eye opening 50% rise in 5 years and the real estate market in San Diego still hasn’t taken off yet.
This graphic from August shows a shortage of units is lifting prices fast.
The US is the only country expected to excel economically, which means the US dollar will only go up. San Diego properties might be as good an investment as those in Toronto and Vancouver. As the world’s baby boomers begin looking for ideal locations to live the last decades of their lives, San Diego will be high on the list.
San Diego has 64 huge condo buildings and San Diego county has many more. The San Diego market is still marked by a high underwater rate so there’s plenty of hidden opportunity here.
The prices are outpacing wage growth, a trend that analysts say is only going to continue so long as the region sees its supply of housing remain tight. Mark Goldman, a loan officer and real-estate lecturer at San Diego State University, said home prices are appreciating faster than he expected — from the San Diego Tribune.
With mortgage rates remaining at such low levels, the condo market will be especially attractive. The average homeowner in San Diego spends $10,647 per year on their mortgage. And the average renter in the city will pay a whopping 44% of their income on their rent. Either for rental income or as a capital investment, condos and homes in San Diego look awfully good.
Of course, we’re talking about San Diego. The luxury market is even more attractive to Chinese buyers who typically only look for $1 million+ properties.
$11.78 billion: The dollar amount in home sales in San Diego County in the first half of 2015, up 13.2 percent from $10.4 billion last year — CoreLogic.
Prospective buyers around the world will see condos for sale like this one at right.
If this market potential doesn’t excite you, I don’t know what will. If you’re a San Diego, Vancouver or Toronto realtor with condo stock for sale, it might be the perfect time to do digital marketing right.
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