Insider Advice
Is now the time to downsize?
By Sabrina Cameron
For most homeowners, the idea of ‘downsizing’ isn’t typically associated with excitement. But it should be — especially now. Most of us think of downsizing as a “downgrade” in our living spaces. But more often than not, downsizing is an upgrade in lifestyle, as many people sell their home for top dollar and trade it in for a boutique condo with all the latest amenities and put money in the bank. Why downsize now The imbalance between supply and demand was already pushing Toronto home prices up before COVID-19, but the pandemic has increased home equity faster than we could have ever expected. Low interest rates, low inventory combined with people looking for more space to accommodate working from home and home-schooling have driven up demand for single-family homes. But while there’s been an incredible upswing in prices of detached and semi-detached homes, condo prices have stayed relatively stable. The average price of a Toronto detached home rose 16 percent to $1.6 million since this time last year. In contrast, the average selling price of a condo in Toronto was down 7 percent to $676,837 in February over the same year-over-year basis. This scenario creates the perfect situation for those looking to downsize and capitalize on their investment. Their large properties are rising in price, while the value of condos have declined in price. That’s not to say that this scenario is expected to last very long, as the condo market did start to rebound earlier this year — especially in boutique buildings. While condos offer obvious benefits like freedom from shovelling snow, cutting grass, and constant upkeep of your house, they are not your only option where you will benefit from shifting gears.
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EastTO Magazine
