At 26, facing a $150,000 loss on your condo, you’re contemplating selling now versus waiting a few years. With monthly mortgage payments at $3,400 compared to a comfortable rent of $2,600, this decision intertwines financial prudence with personal well-being.
Financial Considerations:
- Current Market Trends: As of April 2025, Canadian home sales have declined, marking the weakest March since 2009. The national average selling price has decreased by 3.7% compared to the previous year.
- Future Projections: The Canada Mortgage and Housing Corporation (CMHC) forecasts that home prices could return to early 2022 peak levels by next year and set new highs by 2026.
- Regional Insights: In the Greater Toronto Area, the median price of a condominium is projected to decline modestly by 1.0% in 2025, with thousands of new units adding to the current surplus of supply.
Lifestyle and Personal Goals:
- Financial Relief: Selling now could alleviate the burden of high mortgage payments, allowing you to rent at a more manageable cost and potentially invest the difference.
- Emotional Well-being: Accepting the loss and moving forward can provide peace of mind, reducing financial stress and aligning with your desire for independence.
- Market Timing Risks: Waiting for potential market recovery carries uncertainties, including unforeseen economic shifts that could affect property values.
Conclusion:
If your priority is financial stability and personal freedom, selling now may be the prudent choice, despite the loss. However, if you’re willing to navigate market fluctuations with the hope of property value appreciation, waiting could be beneficial. Consulting with a financial advisor can provide personalized guidance tailored to your specific circumstances.
Richard Wang 