Toronto’s housing market was doing very well in February. According to the statistics, about 11,000 properties were sold in Toronto in the last month.
The data provided by the Toronto Regional Real Estate Board (TRREB) the last month, show that the total number of home sales increased by 52.5%. This number continues to grow.
It’s important to know that things get back to normal on the condo market in Toronto. Condo sales increased by 64% in the city. People prefer to buy condo properties in the suburban 905 and the urban 416 areas.
Condos in Toronto didn’t sell well for a long period. However, the situation changed and the condo sales have grown significantly in early 2021. Despite the situation in Toronto’s condo market, the prices of condo properties continue to go down. The annual decrease in condo prices was 3.7% in Toronto in February.
According to the opinion of TRREB’s Chief Market Analyst, Jason Mercer, the prices of condos in Toronto will most likely begin to go up next year. The experts say that if condo sales continue to grow in Toronto, the prices of condo properties will go up in late 2021.
The condo prices go down because the demand for condo properties is decreasing. A lot of condo investors decided to sell their properties by the end of 2020s. Real estate investors made attempts to benefit from low interest rates and put their money into larger properties.
As you probably know, the price of condos depends a lot on the demand and supply. We have already said that the number of sales has increased by 64% recently. However, the number of new listings has increased by 42% during the year. If such a situation in the Toronto housing market continues, the prices of condo properties will most likely go up shortly.
The demand for condo properties in Toronto is very high these days. The demand for condos will increase shortly because the busy spring buying season is about to begin.
The current real estate market statistics in February show that TRREB’s Home Price Index increased by 15% throughout the year and the average home price is $1,045,488.
The competition in the single-family market is high due to low borrowing costs and high demand for condo properties. And of course, such a situation results in significant price growth.
If we return to February 2020 and analyze the situation in Toronto’s property market, we’ll see that the market hasn’t been affected by the COVID-19 pandemic yet.
However, the situation changed later. Home sales decreased significantly in Toronto in late March 2020. People were afraid to buy properties due to the virus. Lockdowns also hurt Toronto’s housing market and sales.
Now, let’s try to predict what will happen to the Toronto market in the future. The situation in Toronto’s condo market is getting better today. It’s fair to say that the condo market is doing much better compared to 2020. The experts say that sales activity will continue to be high and the annual sales will increase significantly in 2021.
