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Toronto’s condo market cooled off last year during the pandemic, but in this new year, condo sales are already booming. The month of January 2021 is holding December’s gains, with sales activity in the city nearly doubling that of 2020 on a YTD basis. Although Toronto’s condo rental vacancy rate increased, December 2020 ended the year in a surprising turn of events, with condo sales unexpectedly boosting market conditions and pushing Toronto home sales up 64.5%. December’s data showed a big increase in demand for condos, with buyers deciding it was 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 demand for condos in the city and the momentum isn’t stopping anytime soon. Real estate experts are surprised by the pace of the market and suspect that the vaccine rollout has had an effect on buyers. And while there are less people from outside of Canada purchasing condos, the demographic of buyers has also 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 great 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.
Bosley Real Estate Ltd. is a full-service boutique brokerage operating in Toronto, Muskoka, Niagara-on-the-Lake, Port Hope and Cambridge, Ontario since 1928. We have three centrally located offices in Toronto and over 250 sales representatives selling and leasing homes and condominiums in all the vibrant communities we work in. Our brand is well recognized internationally thanks to our unique affiliation with Leading Real Estate Companies of the World. Our sales teams meet weekly to discuss market conditions, trending topics, and anecdotes that more accurately reflect the true temperature of the real estate market.