Toronto’s Housing Market Seeing Ups & Downs

Key Highlights

• The Ups – Toronto’s condo market bounces back big time in Q1 2021
• The Downs – Toronto’s April home prices and sales see sharpest drops in a year

Up’s for Everyone -Toronto’s Condo Market Springs Back to Life

After taking a pandemic beating as residents fled the city for more space, Toronto’s condominium market is back…big time.

The Toronto Regional Real Estate Board recently announced that both condo sales and rental leases soared in the Toronto metro area.  The number of condos sold skyrocketed +80% y/y in Q1 2021.  New leases for condo rentals jumped even more to +82%.

Lisa Patel, president of the Toronto Regional Real Estate Board, said, “Many realtors have noted a marked increase in condo interest since the beginning of 2021.  This interest will likely continue to increase as the economy improves and vaccine take-up accelerates, resulting in more confidence for first-time buyers.”

Ups for Buyers – Discounts in Prices and Rents

As city residents and renters vacated the condo market in Canada’s financial capita due to COVID, condo owners and investors had “plenty of available properties to purchase and rent,” according to Bloomberg. The result?  Discounts.

The average selling price in Q1 2021 dropped -1.4% compared to Q1 2020.  Rent for a one-bedroom unit dropped -17% as rent for a two-bedroom unit fell -13% in Q1 2021 compared to last year during the same time period.

The Results for Q1 2021?

Both buyers and renters took advantage of those discounts in Q1 2021. Roughly10,800 properties, a record, changed hands throughout the Toronto region.  The number of units leased skyrocketed some +82% and the number of condos sold jumped +80%.

The Downs – Sizzling Sales Pace Slows in April

COVID infections jumped and lockdowns began again in April.  The result?  Q1 2021’s sizzling sales pace stalled.  The number of sales plummeted -20% on an annualized basis from the month before and the average price dropped -3.6% from Q1’s already discounted prices, according to the Toronto Regional Real Estate Board.

April’s drops were the steepest declines since COVID’s earliest days last year.

Thanks to Bloomberg and the Toronto Regional Real Estate Board.

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