One year ago, the condominium market cooled as many first-time buyers waited to pull the trigger on purchasing due to economic certainty. The Toronto condo market was impacted the most out of any city in Canada, with the number of listings surging, prices falling and an oversupply of vacant units leading to falling rents.
However, not only is the Toronto condo market rebounding now, it is anticipated to surpass the price gains of detached homes in Toronto. The Toronto Regional Real Estate Board (TRREB) reported that in the third quarter of 2021, condominium sales grew at an annualized rate of 10.6 per cent, totalling more than 7,800 transactions.
Prices have also increased, with the average selling price of condominiums in the GTA now at $689,831 – a rise of 8.9% year-over-year in the three months ending in September 2021. In Toronto proper, the average selling price for a condominium was $726,099 - an increase of 6.62% from the third quarter of 2020. According to TRREB President Kevin Crigger, “This trend will only continue as population growth resumes next year, and limited changes to supply are expected.”
Supply continues to be a critical issue in both the Ontario and Toronto condominium markets. In the region, the number new listings of condominiums decreased 30.9% year-over-year, while active listings fell at an annualized rate of 46.5%. In Toronto proper, residential listings of condos fell 32.6%, and active residential listings plunged 46.19%.
Given these supply conditions along with increased demand from homebuyers who weren't able to purchase in 2021, Royal LePage has predicted that condo prices are set to rise by 12% in 2022 for the GTA. This would increase the median price of a condo in the area to $763,800, an $81,800 jump from the same period in 2021.
Property Hound is your expert with respect to condo sales and purchases, so if you have any questions, concerns, or comments, don't hesitate to drop us an email.
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