Toronto condo prices are set to heat up even more than detached homes in 2022
If there's one industry in Toronto that Omicron definitely isn't going to hamper, it's our real estate market, which is slated to hit shocking new highs next year not only in the face of, but partially thanks to the new variant of concern.
According to a new 2022 forecast for the city's housing market from the experts at Royal LePage, one of the world's least affordable metropolises is about to become even worse for prospective buyers, vastly surpassing the all-time record high prices seen this year.
While the average cost of a home of any type in the GTA — not even in Toronto proper — hit a staggering $1,163,323 last month, we're in for another huge jump, the housing giant predicts, especially in the condo market.
With single-family homes now completely out of reach for most people, would-be home owners are looking to condos, the median price of which is expected to jump by 12 per cent across the region year-over-year to hit $763,800.
Detached homes, meanwhile — which are sitting at an average price of nearly $2 million, according to the Toronto Regional Real Estate Board — are expected to see another 10 per cent spike in median cost.
Lol, my foot. Prices are skyrocketing as investors are hoarding— DeConditioned (@DConditioned) December 1, 2021
"The GTA is the only major region [in Canada] expected to see price appreciation in the condominium segment surpass detached homes in 2022," Royal LePage notes.
"Condos in the city of Toronto and in the greater region have rebounded with vigour... and not only have condo prices rebounded, competition is heating up as entry-level buyers see them as an affordable way to get onto the real estate ladder."
Predictably, the Toronto area is set to see the biggest price appreciation overall in the country next year (11 per cent), followed by Vancouver (10.5 per cent), and the market is anticipated to be "unusually active" through the usually slower winter months.
Also, with return to office plans on hold for many and the prospect of lockdown restrictions returning, there is what the firm calls a continued "hyper-focus" on the home as both a place to live and work.
This, coupled with mortgage interest rates that have been driven down by the pandemic, could mean that emergence of Omicron and resulting restrictions are actually a contributor in making housing more expensive and "may extend this period of unusually strong real estate markets."
Realtors continue to highlight how the chronic housing supply shortage across the country has impacted prices, especially with Toronto and Vancouver being the top places to land for new immigrants.
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