We just saw a one-bedroom condo listed in Milton this morning, and immediately warned three different clients that it won’t last until tomorrow.
That’s how crazy it is right now for this type of property.
In 2020, our prediction is that EVERY single sale of one-bedroom condos is going to break the previous price record.
Why do we think you should be paying attention to this type of property? Have a look at this video, and then scroll down to read the five reasons.
Here’s a summary of what was discussed in the video:
#1 – BIG target audiences. The two largest populations of buyers right now are millenials and baby boomers. Both of them can’t stand those names, but I digress. Young buyers in particular tend to love the one-bedroom condos, especially when it’s a single or a couple. Once kids enter the equation, it’s usually time to move-up to a larger place.
#2 – Investors. Investors also love the entry point of the market, because that’s where the action is. I’ve had a dozen conversations with investors recently, and 80% of them wanted to know about Milton condos. Investors want something easy to sell, something that will appreciate better than the average, and something that will rent easily. One-bedroom condos check all the boxes. Plus, if you think values are going up quickly… rental rates are increasing even faster.
#3 – Overpriced builder offerings. The ripple effect of high-priced builder inventory creates price jumps in the resale market. There’s a “gravitational pull” from the astronomical prices we’re seeing at Connectt and some other buildings.
#4 – Affordability. Right now, buyers qualify for a mortgage at around five times their gross income. So, in order to get a mortgage around $400,000, a buyer needs a household income of about $75k to $80k per year. That’s a decent working wage, even for two people. When the average price in Milton hovers around $750,000, finding affordable options is getting more and more difficult. So for some buyers, one-bedroom condos have become their ONLY option.
#5 – Lack of choices. At any point, there are usually no more than 1-3 one-bedroom condo options available for sale. We have a shortage of buildings in Milton (for now), so when one shows up on the Multiple Listing Service (MLS), it gets a LOT of attention.
There are lots of reasons why the condo market is looking good right now (including this post), but I’m particularly confident about the one-bedroom, smaller condos.
It won’t be long until we start seeing even smaller units and bachelor suites offered by builders, and I’m sure that there will be long lineups to buy them. This type of property has a lot of upside, and it won’t be long before the lowest-priced condo will be $500,000 or even more.