Bad news for those looking to get into Toronto's booming real estate market, but good for those who bought a few years ago — condo prices keep getting higher.
Condos took a hit early on in the pandemic when the average price of a GTA condo fell to $610,000 in the fall of 2020.
That drop quickly rebounded a few months ago, however, with the average condo selling price coming up to nearly $700,000.
Prices started to soar this spring with condos seeing record prices and bidding wars.
Of course, you can find condos for much lower — there are several one-bedrooms listed for under $500,000. You can also go much higher with condos priced at anywhere from an $8.9 million condo with an infinity pool to a $15 million penthouse.
A new study shows that condo prices have, aside from a dip last fall, steadily increased since the last housing peak in 2017, according to data gathered by Properly, a tech-enabled real estate brokerage.
Properly found significant price increases across all housing types, but condos have seen the biggest boost with a 44 per cent increase in average price since 2017.
This is followed by townhouses with condo fees at 33 per cent, semi-detached homes at a 27 per cent increase, freehold townhouses at 26 per cent, and detached homes at 21 per cent higher.
This is good news for condo owners.
"This past year, condo sales were hit the hardest by the pandemic. While sales are now back up to pre-pandemic levels, it's relieving for condo owners to know that their investments have appreciated significantly over time," says Anshul Ruparell, co-founder and CEO of Properly.
Not so great for those looking to buy. Condos in Toronto appear to be bouncing back after months of COVID-related weak sales numbers, Properly finds.
A total of 2,886 condo units sold in the first quarter of 2021, outperforming the pre-pandemic 2020 first-quarter sales number of 2,829.
Ruparell believes condo prices will continue to rise even downtown.
"Moving forward, it's forecasted that solid growth in condo sales will continue as pandemic restrictions ease," Ruparell says. "I anticipate we'll see people coming back to the city centre and back to our incredible city that offers world class dining, entertainment, and liveability."
GTA homes are also expected to continue to rise in value in the coming months and years.
The average price of a home in Toronto will cost $275,000 more in two years, the Housing Marketing Outlook report from Canada Mortgage and Housing Corporation suggests.
The hot spring market, where prices were so out of control, they were considered a high risk, seems to have passed.
"Following the extremely hot spring market we've just seen, we're beginning to see a slight cooling as we head into the slower summer months," says Ruparell.