GTA condo market turning around

Condo buyers are back, and competition between these buyers relative to available listings has been pushing up the average selling price. In the second quarter, the average price of a condo increased by 10 per cent compared to the same time last year. Above-inflation price growth continued in June and is expected to be sustained through the remainder of this year.

Condo sales were seriously impacted in the early months of the pandemic and were slower to recover compared to lowrise market segments (detached and semi-detached houses and townhouses). However, as we moved into 2021, condo sales started to turn around, following the broader recovery in homeownership demand.

Consumer polling conducted by Ipsos for TRREB found about 40 per cent of buyers in 2021 are new to the homeownership journey. The entry point into homeownership for many first-time buyers often begins with a condo. So, given these recent consumer polling results, it’s not surprising that condo buying increased over the last six months.

Renting a condo in the GTA

COVID-19 initially had a marked impact on the condo rental market as well, resulting in much softer rental market conditions and a decline in average rents. However, similar to the ownership market, the number of condos rented during the spring more than doubled over last year. The increase in rental transactions outstripped growth in the number of units listed, both on a year-over-year and quarter-over-quarter basis. If this trend continues, and it more than likely will with a resumption in population growth, we will see average rents for one-bedroom and two-bedroom units start to trend upwards in the coming months.

Condo market continues to strengthen

Looking ahead to 2022, whether you are looking to buy or rent a condo, demand will continue to strengthen. Immigration and non-permanent migration (including students) will pick up. This will positively impact the demand for all types of residential real estate, including condos. Over the next few years, the key question is not whether we will see demand for housing in the GTA, but whether we will have enough supply to keep up with demand. In recent years, housing supply, or lack thereof, has been a persistent issue. Policymakers at all levels of government must continue to work toward solutions that will see a greater diversity of housing supply coming online.

Delve deeper into the condo resale and rental markets by visiting trreb.ca and explore the latest reports. You can also connect with a TRREB member realtor and search listings in real time on any device.