Average condo price toronto . Analyze Toronto apartments. The market reaps the benefits of high house prices.
Over the past 12 months, while all eyes have been focused on Toronto’s red-hot single-family housing market, apartments seem to have been put aside as a large number of urban residents suddenly turn their attention to finding more space in the suburbs.
In the Toronto area and the neighboring suburbs, people tend to opt for above-ground houses with more space, putting pressure on the downtown apartment market, while the sharp decline in immigration, which usually helps to boost the market, has only played a role.
Although the Toronto apartment market slowly began to recover in the final weeks of 2020, as the introduction of the vaccine ensured a return to normal in the city center.
Of course, the damage has been done. Through the end of Q1-2021, the vacancy rate of buildings dedicated to (GTA) in the Greater Toronto area climbed to 6.6%, up 1% from a year earlier to 5.7% at the end of 2020, according to Urbanation. The biggest impact was in Toronto, where the vacancy rate was 8.8% in the first quarter, compared with 1.5% in the city’s 905 communities.
However, this leaves many properties available for purchase and rental, with 2886 new apartments sold in Toronto (1-21-2), more than 2.5 times higher than the quarterly average from the second quarter of 2020 to the fourth quarter of 2020 and higher than before the pandemic. The sales level in the first quarter of 2020 was 2829.
At the same time, the number of rental units reached a high of 11928 in the first quarter, up 70% from the same period last year, while the rent list of new apartments fell 12% month-on-month.
This is because resale in Toronto fell by 20% on a seasonally adjusted basis between March and April, indicating that the crazy pace of the past four months has finally slowed, although the average selling price in the area still reached C $1090992 in April. Up 33% year-on-year-further eliminating potential buyers.
But it is also because of the huge increase in prices that buyers are increasingly returning the apartment market to the apartment market because it is a more affordable option than on the ground, and the average selling price of an apartment is now $727137. This is not to say that apartments have not done their own appreciation work, which has increased by 18.7% year-on-year since April 2020.
In the spring housing outlook of (CMHC), the Canadian mortgage housing company, the National Housing Agency of Canada said apartment sales accounted for a large proportion of overall sales in 2021, indicating a rebound in demand for high-density housing.
“as the pandemic fades, this structural shift in sales to apartment apartments will continue and will contribute to a slowdown in average house price growth,” CMHC said.
According to the Toronto District Real Estate Board (TRREB), home sales in these 416 districts have been recorded as 16,118 since the beginning of 2021, with apartment transactions accounting for 8761 (45.6 per cent).
Doryan Rodriguez (Dorian Rodrigues), PSR Realty’s agent, told STOREYS, that he had noticed that the apartment had indeed rebounded in the past few weeks.
“because of the rapid rise in prices, many couples have now been priced from the permanent ownership market, so buyers either buy apartments or live out of town,” Rodriguez said. “
“I believe housing will remain strong throughout the year, but with Toronto’s efforts to open up, apartments will be the biggest comeback since COVID was founded. Rodrigues added: “We are seeing an increase in inventories and a record number of cores.”
The revival of office work, in-room dining and large social gatherings is expected to further bring demand back to the heart of the city where most apartment apartments are located, CMHC said.
RE / MAX Realtron Realty Inc. Cam Forbes, the general manager / broker, responded to a similar statement and told STOREYS, that he believed that the urban core and the subsequent apartment market provided a long-term advantage for owners and would lead to a rebound in demand to previous levels. COVID time.
Some of the long-term advantages of homeowners include being close to the urban workplace (or avoiding traffic to other workplaces), which ultimately means reducing commuting time, Forbes said.
The social nature of work also brings additional benefits. “even with more flexible work at home, many people still want to socialize in the workplace on a regular basis,” Forbes said. “
Returning to the heart of the city also means: “you are close to sports, including sports, the arts, festivals, events, restaurants, clubs, etc.,” Forbes added.
As a result of reduced demand for cars, people living in urban areas will also reduce their carbon footprint and increase their affordability, which is also a huge attraction for potential buyers, according to Forbes.