For a very long time, the Toronto real estate market was very consumed with condominiums. The views of the city usually included a crane or some sort of construction project. During the pandemic, there was change. The development of these condos slowed down. The sales activity stayed moderate but the prices of these units declined. This was because the demand for them took a turn. People were leaving the city and up-sizing their property by moving into detached or semi-detached homes. Airbnb investors also weren’t able to occupy their space as much as normal because there was less travel to the city.
Now that Covid-19 vaccinations are being rolled out, many people are fully vaccinated who want to be. Life is slowly going back to normal. Now that interest rates are also low, we expect to see more construction happening this year. That skyline we have seen put on pause will soon resume to normal.
Residential sales for Toronto condos have increased by 155 percent yearly during the spring quarter, according to Toronto Regional Real Estate Board (TREB). The average unit selling price went up 10.8 percent within the same time span.
This year was off to a good start for the condo market. Annual rates have increased so far. In the first quarter of 2021 sales increased 79.7 percent to 9398 units. From January to March, the average price for a condo went up 1.4 per to $592,00 when comparing it to last year.
Jason Mercer, TRREB’s chief market analyst, expects that the demand for condos will increase significantly more when the international borders open up. When looking at the federal targets, 400,000 new residents are expected annually from 2021 and 2023 (globalnews.ca). All these people will need homes which will drive prices up!
This evidence shows us that the condo comeback is on its way. Shane Madhani is an award-winning realtor specializing in Condos, Single Family Homes, Renos & Financing in Toronto & the GTA.