Many anticipated that this would happen sooner, but Toronto condo prices are finally on the rise. Toronto’s condo market is now seeing the same fever that has enveloped the region’s single-family home market throughout the pandemic. The Toronto Regional Real Estate Board (TREEB) reports that the last quarter of 2021 was the tightest for resale condos in 20 years.
“Condos are so scarce that buyers are seeing affordability eroded on almost a daily basis”, Condos.ca reports. “Prices are going up, week by week”. Back in September, the average cost per square foot for a condo in Toronto was $1000. Today that number has jumped upwards of $1120. An increase of $120/per square foot in just a few short months!
With so little inventory on the market, many real estate agents are finding that buyers are compromising on features that used to be non-negotiables. Parking, views and floor-plans are no longer deal breakers because many buyers are finding that they are completely priced out of every other home type.
On the bright side, Spring often sees an influx of listings. This might temporarily slow price escalation, but unfortunately it won’t be enough to bring down the cost of condos in the city. Condo experts are also predicting that the government could make it tougher to buy investment units, which in turn could also tamp down activity.
Toronto condo prices are on the rise and it’s not impossible the average condo price will hit $1 million this year, but it will most likely happen by the first quarter of 2023. If you’re thinking you want to buy a condo in the GTA this year, now is the time to act.
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