Condominium market rebounds as Toronto real estate prices cool
Renewed confidence in the condo market has pushed prices up 5% after a year of mass exodus from Toronto real estate
The condominium market is rebounding according to the Toronto Regional Real Estate Board (TRREB). While overall sales in the Toronto real estate market are down 15% from the same period last year, 1,756 condominiums traded hands in July, according to the latest TRREB market report.
This flurry of activity took the average price of condos in Toronto to $ 715,977, nearly five percent more than around the same time last year, when the COVID-19 pandemic decimated this segment of the market. real estate.
“It’s easy to be up five percent from the same time last year,” says Odeen Eccleston of WE Realty. “We were still in the midst of the mass exodus – Torontonians moving to these rural areas. “
Eccleston also adds that there is renewed confidence in the condominium market, especially with re-openings and the expectation that immigration will once again attract new tenants and buyers as border restrictions loosen.
“Around the same time last year, Airbnb was banned,” says Eccleston. “Now he is operational again. Investors see that this is still a viable option.
In a statement, TRREB chairman Kevin Crigger attributed the rise in the condominium segment to first-time homebuyers who did not take advantage of the initial recovery phase of the real estate market.
A two-bedroom bungalow in Toronto listed for $ 2.3 million.
Freehold homes still out of reach
Eccleston adds that buyers are also motivated to enter the condominium market due to the lack of inventory in the freehold market (detached, semi-detached and townhouse) which leaves them overpriced. “It’s more and more elusive,” Eccleston says.
The number of single, semi-detached and row homes sold in Toronto in July does not match the number of condominium transactions. The average price of a single-family home in the Toronto real estate market for the month of July was $ 1,633,649. This is a 4% drop from the previous month, a clear indication that prices are cooling but remain out of reach.
Single-family homes in Toronto are still 5.7% higher than the same period last year. Single-family homes at 905, which cost an average of $ 1,346,186, are selling for 27% more than in July 2020. Even with the housing market cooling, you’ll still find a slightly dated two-bedroom bungalow in Toronto listed for close. of $ 2.3 million.
According to the TRREB market report, the most affordable areas in Toronto in July were the east side of downtown – including Cabbagetown, Regent Park, Moss Park and the Canary District – and central Scarborough. Average selling prices in the two regions in July were $ 742,832 and $ 759,472 thanks to a high volume of condo sales.