The Toronto condo market had cooled during the pandemic, but in this new year so far condo sales are booming. The month of January 2021 is holding December’s gains with sales activity in the 416 nearly doubling that of 2020 on a year-to-date basis. Although the Toronto rental vacancy rate increased, December of 2020 ended the year strong with an amazing turn of events that boosted market conditions with Toronto home sales up 64.5%. Last December’s data showed a big increase in demand for condos by investors who understood this was the beginning of a great time to get back into the market.
Analysts say low interest rates and a light at the end of the COVID-19 tunnel is driving up demand for condos in the city and the momentum isn’t stopping anytime soon. Real estate experts are all surprised by the pace of the market and suspect that the vaccine rollout has had an effect on buyers. And while there aren’t as many people from outside of Canada purchasing condos, the demographic of buyers has changed. The fact remains that downtown Toronto has a limited supply of land. Anyone who follows real estate trends can understand why downtown Toronto is beginning to catch more condo investor interest.
Toronto condo prices are still down about 5% year-over-year and down about 10% in downtown Toronto from their peak back in February 2020, which presents a good buying opportunity. The condo market has been traditionally reserved for first time buyers and downsizers, but as freehold home ownership becomes less affordable, we expect even more activity. Once activity ramps up mid-2021, it won’t be surprising to see condo prices rising to new levels.