Ontario has already surpassed its “peak” COVID stage and most of the province has already entered – or is preparing to enter – Stage 3. Things are starting to return back to ‘normal,’ especially in the local housing market, which saw Toronto home sales rebound in June with the average selling price of a home hitting a new all-time high.
Home prices might be going up, if you’re looking to get into the Toronto condo market, this fall could be an ideal time, according to RE/MAX.
While Toronto real estate has already weathered the height of the pandemic, with sales back up and average prices in June hitting a new record high, the condo market experienced less-pronounced price growth, hinting at a possible buyer’s market.
According to data from the Toronto Real Estate Board (TRREB), average prices in June reached $931,000, surpassing the previous record of $920,791 back in April 2017. Detached home prices in Toronto increased by 14.3% to $1.52 million, while semi-detached home prices were up 22% to $1.29 million. Meanwhile, the average price of Toronto condos rose by 5.6% in June, to $672,000.
Meaning, we’re gearing up for a great time to consider entering into the Toronto condo market, at least according to RE/MAX (who have what you might call a ‘vested interest’ in the market).
Christopher Alexander, Executive Vice President and Regional Director at RE/MAX of Ontario-Atlantic Canada, recently appeared on Breakfast Television where he hinted at the possibility of a market shift in this popular Toronto real estate segment.
“The Toronto condo market has largely been driven by supply and demand from immigration. The GTA was attracting about 100,000 new residents every single year. With border closures between provinces and countries, it’s been difficult for people to come into the area. Plus, the short-term rental market was severely impacted as well, so there’s a lot more inventory for buyers to choose from,” said Alexander.
“We’re just teetering on a balanced market for condos right now, and it could possibly end up being a buyer’s market come the fall. If you’re looking to get into the condo market, now could be the right time, as prices are moving in the opposite direction than the detached segment.”
It’s becoming clear that consumer behaviours are changing in the wake of COVI-19, be it how and where they want to live. RE/MAX says its brokers have reported a spike in demand for larger properties, as more homebuyers are turning to outside of the downtown core in the search for more space. As a result, high demand and low supply have prompted an increase in prices for these types of properties – another indicator that more buyers may turn to enter the condo market for a more affordable option.
RE/MAX has reported that in the first six months of 2020, detached housing values increased in 95% of markets across the Greater Toronto Area. Here in Toronto, double-digit price growth was reported in 60% of districts. What’s more, sales and listings declined when the State of Emergency came into effect, but by mid-May, activity resumed in regions around the city and demand was once again on the upswing.
Mr. Alexander noted that the current lack of inventory definitely “hampered” sales in June, and will continue to do so, especially in the 416-region.
“Inventory issues have plagued the GTA for years now. It’s clear that there is not enough supply to satisfy demand. While this is great news for existing homeowners, new homebuyers face serious challenges getting into this pricey market. If the government wants to control the rapid increase in price, more supply needs to come on stream.”