Condo sales are way down in Toronto but prices are up
Realtors continue to report dwindling condo sales in Toronto amid the COVID-19 pandemic, even as life begins returning to (some sort of) normal and the market as a whole rebounds.
Only 3,459 condominium apartments were sold throughout the entire GTA during the second quarter of 2020, according to figures released Friday by the Toronto Regional Real Estate Board (TRREB).
This amounts to a whopping 50.8 per cent decline compared to the same period of time last year.
Still, as we've seen in other housing market segments (most pronouncedly the detached home market), prices just keep on going up.
The average selling price for condo apartments in the Greater Toronto Area shot up 5.1 per cent, year over year, to reach $619,707 in the second quarter of 2020. Within the City of Toronto specifically, the average price of a condo is now $661,458.
"The condominium apartment market experienced a dip in sales and new listings in the second quarter of 2020, as many potential buyers moved to the sidelines as a result of public health measures taken to combat COVID-19 and the resulting economic downturn," said TRREB President Lisa Patel in a release accompanying the board's Q2 2020 Condo Market Statistics report.
TRREB releases Q2 Condominium Report.— Toronto Regional Real Estate Board (@TheReal_TRREB) July 31, 2020
Despite market conditions becoming more balanced the avg price for condo Apts was up 5.1% compared to Q2 2019 to $619,707.
Click here for the complete report: https://t.co/S2kkHcayLq#CondoMarketWatch #MarketWatch pic.twitter.com/GpbUlP0V2x
Based on overall housing market trends, Patel predicts that condo sales will improve over the third quarter of this year.
"If economic recovery is sustained, the demand for condo apartments will improve," said TRREB Chief Market Analyst Jason Mercer of the market.
"However, the prospect of stricter regulations on short-term rentals and softer rental market conditions could fuel increased listings of investor-held units. If we see more balanced market conditions, condo price growth could be more moderate compared to low-rise home types."
Yes, listings for condos to buy may be down, but listings for condo apartment rentals actually shot up by quite a bit over the past year: 42 per cent.
"COVID-19 clearly impacted the demand for rental condominium apartments, due to restrictions on showing units and job losses across many sectors of the economy," said Patel, noting that the growth in listings has moderated the once unsustainable pace of rent growth in Toronto.
The average one-bedroom GTA condominium apartment rent was $2,083 during Q2, according to TRREB, marking a five per cent decline year over year. Two-bedroom rents dipped by roughly 5.6 per cent over the same period, reaching a new average price of $2,713.
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