Condos to remain an essential source of housing

Demand for condo apartments remained strong in the first quarter of 2022 and average selling prices continued to grow. The price to buy a condo is up more than 20 per cent when compared to the first quarter last year.

Although condo sales were down in the first three months of 2022, historically speaking, sales were still strong. Greater Toronto Area (GTA) realtors reported almost 8,000 sales on TRREB’s MLS system.

Affordable entry point

Many first-time buyers see condos as an affordable entry point into homeownership. At the other end of the spectrum, condos provide a luxury alternative or an option for those looking to size down, while investor-owned condos are an important source of rental supply. As we move into a higher interest rate environment, condo apartments, with their lower price point on average, will likely remain a top choice for first-time buyers actively searching for a home.

When it comes to new condo listings, they have been flat to down. This means that competition between buyers remained tight enough to support double-digit annual average prices.

Meanwhile, the GTA population is expected to grow at record or near-record levels over the next few years, based on immigration. This growth will be supported by job opportunities across diverse economic sectors. All these new households will require a place to live.

Essential source of housing

So, what does this mean for condos? They are an essential source of housing, both for people looking to purchase a home and for those looking to rent, and this will continue to support demand.

If you’re interested in digging deeper in the condo market, you can stay up to date with our monthly Market Watch. We break down prices, sales, and new listings each month with an easy to glance report. Visit trreb.ca to explore the latest look into the housing market. Plus, connect with a TRREB member realtor and search listings in real time on any device.