How to find condos for sale in Toronto under $600,000
The condo apartment market in Toronto peaked in April 2022. From the peak, prices dropped for the second half of 2022.
In Spring 2023, there was a recovery, but it appears to have run out of steam.
Prices are beginning to fall, there are fewer buyers, and the number of active listings is growing.
This provides an excellent opportunity to get into the market.
How do you protect yourself in a market of falling prices? Avoid the premium/luxury market and buy in more affordable areas. Lower-priced condos tend to have less volatile prices.
Condo apartment prices in the GTA have risen more dramatically over the past decade. Metro Toronto’s condo affordability is the second worst in Canada, behind Vancouver among the major Canadian cities.
Given the popularity of condos in Toronto, how can I get one?
This is a buyer's guide to condos for sale in the GTA under $600,000. We will cover everything from where to find these condos to what to look for when making an offer.
Where to find condos for sale under $600,000
There are over 60 distinct areas in the GTA, but only a handful have sufficient supply of condos and a median price under $600,000. Some are far from Downtown and some are surprisingly central.
Here are a few of the best areas to look at:
Orangeville
Bradford
New Tecumseth
The median sales price is the price where half of the listed prices are higher, and the other half are lower than it. For example, if you have 15 home prices, the median price would be the price where seven prices are above it, and seven are below it. This is a proxy for your “typical apartment” in the area.
How to find the right property
Sometimes, people feel they are being manipulated by real estate agents who play the “Goldilocks” three-tier pricing game.
They show you an awful affordable home and know you wouldn’t buy it.
Then, a dream home that is above your price range, and you couldn’t buy it if you wanted to.
Finally, they show you a home that completely exhausts your budget and is perfectly acceptable.
Given only those three choices, you would quickly decide to take the third home.
But what if five homes in the area are similar to the third option? If the agent told you about them, you would want to view them all, making your decision more difficult. However, while this selection of homes might take more effort, it could result in you getting more value for your money.
Here are some tools you can use to ensure the real estate agent is presenting you with all the options.
Ask an AI Tool
Ask an AI like Bing or ChatGTP-4 that has access to the internet. We tested Bing with a search, and it brought back some results. The benefit of the AI is you can copy-paste the list into a Word document or Excel spreadsheet and add comments next to each address. With searches of listings online, you would have to copy each property one at a time into your tracking document.
Here is a test we ran using Bing AI. While it didn’t follow our instructions perfectly, it provided the results in a matter of seconds. You can continue to ask for more refined answers, too. Over time, an AI can comb through listings to provide an optimised shortlist faster than any human.
Manual Search of Realtor.ca
Several real estate websites list condos for sale in Toronto. Realtor.ca is the only impartial source. Popular sites like Zoocasa and Zolo are intended to drive you toward signing up with one of their affiliated real estate agents. Most listing sites have the same information as Realtor.ca. The real estate agent takes the same property profile and posts it to multiple sites.
Talk to a local real estate agent
Real estate agents can also help you find condos for sale under $600,000. They have access to listings that are not always available to the public, or they might be aware of properties that are being prepared for a listing so you can get early access. You should have your own real estate agent to complete a purchase, so you might as well find one you like early in the journey.
A local agent specialising in apartment sales should have good knowledge of the condition of local buildings, the political pulse of building condo boards, which buildings are dominated by landlord owners who might want to perform minimal maintenance, and which buildings are owner-occupied and are getting more TLC.
What to look for when buying a condo under $600,000
When buying a condo under $600,000, there are a few things you should keep in mind:
Location: Location is always important when buying a home, but especially when buying a condo. Condos in desirable locations near transit and shopping tend to appreciate value faster than condos in less desirable locations.
Size: Condos under $600,000 are typically smaller than expensive ones. If you have a family, you may need to consider a two-bedroom condo or a one bedroom condo with a den. If your priority is living space, then focus on Orangeville or Oshawa.
Amenities: Condos with amenities, such as a pool, gym, or parking, tend to be more expensive. However, these amenities can be of great value if you use them often. Buildings with gyms and pools typically have higher monthly maintenance fees, so compare the difference in maintenance fees to the cost of a monthly gym membership nearby. Ideally, you only want to pay for amenities you will use and get value from.
Condition: The condition of the condo is also important. Assuming the monthly maintenance fees are equal, well-maintained condos tend to sell for more money than condos that are not well-maintained. Review the homeowners association or condo board meeting minutes, their reserve funds, and the depreciation report (if one is available).
Condominium fees: Condos have condominium corporation or homeowners association fees that cover the cost of common areas, routine maintenance, setting aside a reserve for major repairs, and amenities. Fees can vary depending on the condo building ownership, the amenities, and the size of common spaces.
Property management: Research the property manager of the building. Often, the condominium will hire a property manager to handle most of the building maintenance and administration. Check the property manager’s reviews online and ask other members about the quality of service. A poor property manager can indicate that the condo board is not governing the building well.
Making an offer on a condo under $600,000
When making an offer on a condo under $600,000, it is important to be prepared. Here are a few tips:
Do your research: Before making an offer, be sure to research the condo market in the area. This will help you determine a fair offer price for the condo.
Get pre-approved for a mortgage: Getting pre-approved for a mortgage will show the seller that you are serious about buying the condo. Typically, a real estate agent will want you to be pre-approved before you begin viewing properties.
Be prepared to walk away: An accepted offer is not an automatic win. Before making an offer, determine the maximum you would be willing to offer. Keep it to yourself. This shouldn’t be your first offer price, it is a line in the sand beyond which you commit not to negotiate.
Make a competitive offer: Be prepared to make a competitive offer. This will increase your chances of having your offer accepted. Your first offer should not be your best offer. Most sellers expect to negotiate, and some can be offended if you refuse to negotiate. Leave yourself some wiggle room.
Be prepared to negotiate: The seller may not accept your first offer. Be prepared to negotiate on price, closing date, or other terms of the sale. You are negotiating a fair price for the property. If the seller insists their home is worth more than you think it is, and you are correct, that means you can walk away and find a better deal buying from someone else in the area.
Buying a condo under $600,000 can be a great way to enter the GTA housing market. There are many great options available, and with a little research, you can find the perfect condo for your needs.
