{"id":8937,"date":"2021-01-08T20:29:17","date_gmt":"2021-01-08T20:29:17","guid":{"rendered":"https:\/\/www.canadianrealestatemagazine.ca\/gta-condo-sector-roaring-back-to-life\/"},"modified":"2023-11-16T03:36:11","modified_gmt":"2023-11-16T03:36:11","slug":"gta-condo-sector-roaring-back-to-life","status":"publish","type":"post","link":"https:\/\/www.canadianrealestatemagazine.ca\/news\/gta-condo-sector-roaring-back-to-life\/","title":{"rendered":"GTA condo sector roaring back to life"},"content":{"rendered":"

The Greater Toronto Area\u2019s condominium market moderated in 2020, but does that tell the whole story? Absolutely not.<\/p>\n

While sales declined by 5% compared to 2019, according to the Toronto Regional Real Estate Board (TRREB), prices actually increased by 7.1%. In the 416 and 905, prices rose by 6.3% and 10.2%, respectively.<\/p>\n

proved a record-breaking month for the GTA\u2019s condo sector, as sales increased by 75.4% year-over-year. The average price of a condo, however, fell by 2%.<\/p>\n

In the City of Toronto, condo sales surged by 75.9% during the same period, while the average price declined by 4.7%. In the 905<\/a>, sales shot up 74.5% and the average price increased by 6.3%.<\/p>\n

\"A<\/p>\n

The condo segment of the GTA\u2019s housing market experienced a lot of turbulence last year. Through the first five months of 2020, sales plunged by 28.1% compared to the January-May period of 2019, yet the average price actually increased by 12.1%. To call that a major departure from the fundamental laws of supply and demand would be an understatement, so what explains the rise in valuations?<\/p>\n

According to TRREB\u2019s analysis of the market in May, one- and two-bedroom condo rental transactions respectively declined by 30.8% and 26.7% on an annual basis, but they nearly doubled from a month earlier.<\/p>\n

\u201cThe number of one-bedroom rentals, at 1,290, was well above the 754 mark for April,\u201d said a TRREB<\/a> statement from June. \u201cSimilarly, the number of two-bedroom rentals, at 820, was well above the 489 rentals reported for April.\u201d<\/p>\n

The data indicate that renters\u2014a cohort who, not long before, had found themselves in bidding wars, sometimes having to pay hundreds of dollars more a month because the city\u2019s vacancy rate hovered around 1%\u2014took advantage of slightly lower rental rates. In other words, while some condo residents vacated their units, others who\u2019d been waiting patiently pounced.<\/p>\n

By December, sales were surging again and the condo sector was beginning to look like its old self, signifying strong confidence in the market segment going forward. Even more importantly, it demonstrates resolute faith that the GTA\u2019s market fundamentals aren\u2019t mere smoke and mirrors, as well as a tacit understanding that the sudden,  were artificial.<\/p>\n

Additionally, more expensive ground-related homes sold like hotcakes, which further indicates that a significant number of Torontonians weren\u2019t as hard hit by the pandemic as perhaps originally thought. It stands to reason, then, that the GTA\u2019s market fundamentals are a lot stronger than anyone thought.<\/p>\n","protected":false},"excerpt":{"rendered":"

The Greater Toronto Area\u2019s condominium market moderated in 2020, but does that tell the whole story? Absolutely not. While sales declined by 5% compared to 2019, according to the Toronto Regional Real Estate Board (TRREB), prices actually increased by 7.1%. In the 416 and 905, prices rose by 6.3% and 10.2%, respectively. proved a record-breaking […]<\/p>\n","protected":false},"author":6,"featured_media":23104,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[4],"tags":[],"acf":[],"_links":{"self":[{"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/posts\/8937"}],"collection":[{"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/comments?post=8937"}],"version-history":[{"count":5,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/posts\/8937\/revisions"}],"predecessor-version":[{"id":29037,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/posts\/8937\/revisions\/29037"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/media\/23104"}],"wp:attachment":[{"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/media?parent=8937"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/categories?post=8937"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.canadianrealestatemagazine.ca\/wp-json\/wp\/v2\/tags?post=8937"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}