Condo sales in the GTA increased by a stunning 70% in 2021 when compared to 2020 sales.
On Tuesday, RE/MAX released its newest Canadian condo real estate report, tracking market changes across the country. According to the data, 30,383 condos were sold in the GTA from January 1 to August 31 this year. This represents a 71.1 percent increase over the 17,760 sales made in the same time period in 2020.
Although the increase in the number of condos sold in the GTA is surprising, it may be even more surprising given it is lower than two other Canadian regions. Calgary saw an increase of 82.6 percent, while Greater Vancouver saw an increase of 87.2 percent.
Many ambitious purchasers were encouraged to investigate alternate (and more cheaper) types of property with less competition as a result of quickly growing detached home costs.
“After bearing the brunt of the impact of the pandemic on the Greater Toronto Area’s housing market, condominium sales and prices have roared back to life in both the city and suburbs in 2021,” says the report.
Although the increase in condo sales in the GTA is surprising, the fact that it is lower than two other Canadian areas may be even more surprising. Greater Vancouver grew 87.2 percent, whereas Calgary grew 82.6 percent. Many ambitious purchasers were encouraged to investigate alternate (and more cheaper) types of property with less competition as a result of fast rising detached home prices.
Prices increased in lockstep with GTA condo sales, but not at the same rate. The average condo sale price in 2020 was $640,274. That price increased by 7.5 percent to $688,137 in 2021.
Condos currently account for 34.5 percent of total house sales in the Greater Toronto Area, up from 30.8 percent in 2020.
“Affordability, coupled with availability, set the stage for the exceptional rebound in condominium sales across Canadian real estate markets in 2021,” says Christopher Alexander, senior vice president of RE/MAX Canada. “Double-digit acceleration in detached housing values revived slumping condominium sales early in the year, with demand shifting into high gear as detached supply dwindled and prices accelerated. Younger buyers have been behind the push for condominiums to date, with most looking to lock in low interest rates and buy before prices climb beyond their means.”