Condos are the most affordable, second-most in-demand property type in the GTA

Aug 9 2022, 5:25 pm

Condo apartments are the most affordable, and the second-most sought after, property type in the Greater Toronto Area.

In a new report, real estate agency Zoocasa points out that, year-over-year, the average price of a condo apartment in the GTA jumped 11.9% in July.

The figure, courtesy of the Toronto Regional Real Estate Board (TRREB), marks the largest annual price growth of any property type in the region or in the City of Toronto last month.

The increase is trailed by Toronto townhouses, which saw prices rise 7.6% annually. Meanwhile, detached homes in the city saw prices fall 7.3% year-over-year.

“The stand-out property type in Toronto and the GTA is condo apartments,” Zoocasa said.

A total of 1,365 condo apartments changed hands across Toronto and the rest of the GTA in July. Although it’s a 47.5% annual decline, it’s a demand only surpassed by the number of detached homes that sold last month — 2,203.

“In much of 2020 and 2021, buyers lost interest in condo apartments and many had their eyes set on a freehold property, which drove down the price of condos,” said Zoocasa Managing Broker Claudio Castro.

“Condo apartments are still the most affordable property type in Toronto and the GTA and as buyers have shifted their focus from properties with backyards and more work-from-home space to affordability, the demand for condos, especially in the GTA, is growing quickly.”

Outside Toronto itself, Peel Region and York Region saw the most condo sales in the GTA last month — 154 and 145, respectively. Mississauga followed, with 128 sales.

The regions are all more affordable than Toronto, Zoocasa noted. In July, the average price of a condo in Peel was $616,876, in York it was $687,843, and in Mississauga it was $628,116. In Toronto, the average price was $744,092.

The data is “important for both prospective condo buyers and sellers,” Zoocasa said. The former should explore the markets due to their relative affordability, and the latter should be aware that demand is high.

According to the TRREB’s latest Market Watch report, 4,912 homes were sold in Toronto and the GTA in July, a 47% decline from a year prior. New listings fell 4% annually.

Despite the significant annual drop, Zoocasa said the month-over-month decline in sales was to be expected, and followed “more traditional real estate cycles.”

“In a normal year, the real estate market follows cycles where home sales and new listings increase, and other times when they slow,” Castro said.

“The dip in sales we’re seeing month-over-month follows the summer trend, as many people are away on holidays or traveling and less involved in the real estate market.”

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