Toronto

Toronto Condo Sellers List At The Fastest Pace In Over 5 Years, New Listings Rise 57%

Toronto real estate has seen pent up demand drive sales higher, but the impact on condos has been limited. Toronto Regional Real Estate Board (TRREB) data shows a fairly large uptick for condo sales in July. The increased sales volume has been met with sellers hitting the market at the fastest pace in at least 5 years. With new listings hitting the market faster than sales, inventory has increased to the highest level since 2016.

Greater Toronto Condo Prices Peaked In May

The price of a typical condo is higher than last year, but the suburbs are where almost all of the gains are. TRREB reported the benchmark price of a condo apartment reached $593,500 in July, up 9.34% from last year. The City of Toronto condo benchmark reached $622,700, up 7.93% from last year. Both numbers are higher than last year, but down from the peak reached earlier this year.

Toronto Benchmark Condo Price

The price of a “typical” condo apartment in Toronto.

Source: CREA, Better Dwelling.

Both the suburbs and city are seeing price growth decelerate, with the city slowing faster. TRREB’s benchmark growth of 9.34% is the smallest advance since October 2019. The City of Toronto’s benchmark increase of 7.93% is the smallest since last September. Both regions are down from a peak reached in May, with TRREB down 1.29% and the City down 1.72%. The City only saw prices increase a few bucks from the month before in July.

Toronto Benchmark Condo Price Change

The annual percent change of price, for a “typical” condo apartment in Toronto.

Source: CREA, Better Dwelling.

The median sale price made a bigger increase from last year, but is much lower than the benchmark. TRREB data shows the median sale price reached $575,000 in July, up 10.57% from the same month last year. In the City of Toronto it reached $617,000, up 9.20% from last year. This means across TRREB, about half of condos sold at least 3.11% lower than the benchmark. In the City, at least half of units sold 0.91% lower than the benchmark.

Toronto Median Condo Sale Price

The median sale price of a condo apartment in Toronto.

Source: CREA, Better Dwelling.

The Average Sale Price Peaked In An Unusual Month – February

The average sale price moved higher, but has been spinning sideways since the pandemic. TRREB reported an average price of $635,778 in July, up 8.86% from the same month last year. The City of Toronto average reached $682,999, up 8.77% from the same month last year. Both the City and TRREB’s average sale price peaked in February, with the 905 peaking a month later.

Toronto Average Condo Sale Price

The average sale price of condo apartments in Toronto, and the suburbs.

Source: CREA, Better Dwelling.

Greater Toronto Condo Sales See Biggest July Since 2016

Greater Toronto condo sales are seeing some pent up demand, but nothing like the other segments. TRREB reported 2,432 condo sales in July, up 6.7% from last year. The City of Toronto represented 1,689 of those sales, up 4.7% from the same month last year. This was the biggest July for condo sales since 2016, but a larger flood of new listings balanced out the minor increase.

Toronto Condo July Sales

The number of condo apartments sold in the month of July, by year.

Source: TREB, Better Dwelling.

New Listings For Toronto Condos Rise Over 57%

The number of new listings was much higher than sales – in fact, it was a multi-year record. TRREB reported 5,349 new condo listings in July, up 57.74% from the same month last year. The City represented 3,976 of those listings, up a whopping 65.59% from last year. This is the highest single month for new listings for condos in at least half a decade.

Toronto Condo Sales Vs. New Listings

The number of condo sales, vs newly listed condos across Greater Toronto.

Source: TREB, Better Dwelling.

Condo Inventory Rises To Highest Level Since 2016

Greater Toronto active listings reached a multi-month high for condo inventory. TRREB reported 5,182 active listings for condos in July, up 47.88% from last year. The City of Toronto represented 3,814 of the units, up 59.11% over the same period. This is the most condo inventory since June 2016. The big difference between now and then is inventory was falling back then, and is rising these days.

Toronto Active Condo Listings

The number of condo listings available for sale in Toronto.

Source: TREB, Better Dwelling.

Toronto condos are seeing an uptick in sales, largely attributed to pent up demand. This same trend is also leading to an uptick of inventory as well though, removing some pressure on prices. The increase in inventory is also likely to extend as immigration and a softer than usual back to school season approaches. Unlike the pent up demand from the lock down, those factors aren’t likely to increase sale volumes as well.

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14 Comments

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  • Reply
    Laurel 1 month ago

    Small uptick doesn’t mean jack squat until it clears the high from earlier this year. Multi-year downturn IMO, and the longer prices stay at this level – the more likely people are to just move to another place in a few years.

  • Reply
    Jason Chau 1 month ago

    Months of lost rental income is finally catching up. Who knows what rental prices are going to be like in a couple of years. The interesting thing is condos were already crummy yield for landlords. With prices at the same level, and rents falling – it makes it an even worse investment.

    • Reply
      Christopher Barclay 1 month ago

      Maintenance fees are rising very quickly, for amenities that can barely be used.

    • Reply
      Kolf 1 month ago

      Condo fees makes condos very poor investment in general.

  • Reply
    OM 1 month ago

    Combine this the spike of condo rentals that are vacant, and the party’s just getting started.

  • Reply
    alvi 1 month ago

    So we have confluence of events:
    1) Forced conversion of short-term rentals to long-term levels
    2) Lower demand because of decrease in foreign students
    3)Shift of preference for high-rise to low rise
    4) New builds from sales previous to Pandemic
    5) Tremendous run -up in prices before pandemic
    6) Higher unemployment and fear that the expiring of defferals and CERB will bring out more selling
    Have I missed any?
    How long does it take to balance market assuming no future significant outbreak and how low will prices fall from the high in Feb 2020

    • Reply
      Antony Attisano 1 month ago

      you missed the huge backlog in evictions that will increase supply in the coming months

    • Reply
      Tony 1 month ago

      7) huge backlog in evictions that will increase supply in the coming months

  • Reply
    Kolf 1 month ago

    Why would anyone want to live in a condo.

    Have you seen those buildings that are more than 20 years old? They look horrible and are dirty. If one tenant have bad hygiene the whole building will be full of cockroaches and rats.

    Condos are way over priced, time to let this trash segment pop.

  • Reply
    AyyLmao 1 month ago

    if condos are being listed at such a fast pace because they are no longer a viable investment at the price they were purchased for previously, then how is an “investor” going to make money from it if they are purchasing it with YOY price increases plus maintenance fees increasing every year. Obviously not all of it is going to be income properties, but you have to wonder if those jumping into the market now are going to be the bag holders.

    • Reply
      Andrew J 1 month ago

      Yes that’s it exactly. I’m sitting on the sidelines trying to keep my FOMO in check. I can wait a year. I’ve waited this long.

  • Reply
    straw walker 1 month ago

    Who wants to ride an elevator packed full of virus infected tenants.

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