They incurred quite the downfall in 2020, but Condos are on the rise in 2021.

Condos on the rise began in early 2021, and continued through the third quarter of the year.  Inventory that had been building since the infamous exodus of downtown Toronto in 2020 had buyers come for the taking in 2021.

Sales were up considerably in Q3 2021 compared to last year with 7810 condominium sales in the GTA.  An increase of 10.6% over the year prior.

What does this mean?

It means that competition between buyers in the condo space increased considerably.  Not yet reaching heights of the house property type competition.  But it was fierce.

“The condo market has seen a dramatic resurgence compared to a year ago. In 2020, first-time buyers sat on the sidelines due to economic uncertainty.”

• TRREB President, Kevin Crigger

The Q3 Condominium Report by TREBB signifies strong growth for the property type.

Seller’s Market Conditions

Condos on the rise mean the return of a Seller’s Market for this segment of house type.

Owners of condos within the GTA can rejoice as the worst appears to be over.

The price to purchase a condo apartment in the GTA is now $689,831 – up 8.9% over Q3 2020.

The region with the highest average price for a condo apartment was Toronto at $726,099.  The lowest average price can be found in Durham region at $503,506.

Why are Condos on the rise?

As per TREBB President, Kevin Crigger

“Improving economic prospects have seen many first time buyers accelerate their search for a property. This trend will only continue as population growth resumes next year, and limited changes to supply are expected,”

As condominium apartments are generally the most accessible and affordable property type, they attract first time home buyers as they navigate entering the market for the first time.

These buyers have recognized that with each passing month, condos become more and more expensive.  Thus, they’re not waiting any longer to make that purchase.

As many condos as there is under construction in Toronto, there appears to be ten times the buyers lining up to purchase them.

This keeps demand and prices up.

Room to grow.

The interesting thing to watch will be just how long condos on the rise will be making headlines.

There’s still quite the gap between freehold homes and condominium apartments.

New pre construction single homes cost on average $1.5M+ to purchase in the GTA.  Condominiums are still priced well below that average.

For how long however?  

Recent pre-construction condominium projects have crossed the $1800/ sq ft mark (ahem – Goode condos in the Distillery.)  Is that the new norm thanks to development charges developers face from the city and it’s planning departments?

Perhaps.

Our take is that it would be safe to suggest that condo prices have plenty of room to rise over the next few years and play catch up.

Want to chat condos?

Have a condo to sell or want a condo to buy?

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