The Toronto condo market certainly took a hit in 2020. It was the makings of a perfect storm with Covid-19, record low interest rates and newly regulated short-term rental rules that came into affect.

Buyers had new opportunities to buy, more buying power. With all the lockdowns and restrictions in place, buyers even started to head out of the City altogether.

Condo Listings Outgrow Condo Sales

The Toronto Regional Real Estate Board conducted consumer polls by Ipsos. In Fall of 2020, it was found that over two thirds of investors were thinking about selling due to new short term rental rules and reduced rental prices.

2020 had 46,692 new condo listings (up 33% over 2019) and the average price growth was only up 7.1%. Condo sales account for nearly half of all sales within the City boundaries.

In another poll by Ipsos, home buyers intentions hadn’t actually changed in regards to purchasing. Of the 30% of survey responders, 45% of those were first time buyers. Which should be positive news for the rebound in condo sales in 2021.

GTA Realtors reported 10,970 sales through TRREB’s MLS system in February 2021. That’s a 52.5% increased over the 7193 reported sales in February 2020. The condo segment lead the way of all GTA areas combined with a 64% sales increase compared to 2020.

Looking back at the 4^th quarter of 2020, condo sales were up 20.7% over the 4^thquarter of 2019, with a total number of 6469 sales in the GTA. The average selling price was down by 1.1% over prices from 4^th quarter of 2019.

Looking ahead in 2021

The Toronto Regional Real Estate Board forecasts a year of low supply which will result in great buyer demand and continue to surge sale prices. Predicting during a pandemic is challenging as we still don’t know the full extent of the fallout from Covid-19. They do expect that demand for housing in 2021 will remain strong.

The RE/MAX 2021 HOUSING MARKET REPORT forecasts the condo market to continue to be a buyers market due to ample inventory levels. Condos will likely see more activity this year though especially once our borders relax their restrictions and the Country starts allowing for our regular Immigration to resume. For more information on some building in Toronto and Etobicoke see our Condo Guides.

Whether you have questions about the market or you’re ready to find your perfect property, I’m here to help. Reach out to connect with me today!