Condo sales in the GTA have soared during 2021, rising a staggering 70% compared to 2020 sales.
RE/MAX released its latest Canadian condo real estate report on Tuesday, detailing changes in the market all across the country. The GTA, according to the report, saw 30,383 condo sales from January 1 to August 31 of this year. This is a 71.1% change from the 17,760 sales in 2020 during the same time period.
“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,” the report reads.
Although the GTA’s upswing in the number of condos sold is quite shocking, what may come as an even larger surprise is that it’s actually lower than two other Canadian markets. Calgary saw an 82.6% increase, and Greater Vancouver experienced an 87.2% growth.
Much of this growth can be attributed to rapidly increasing detached home prices that pushed many aspiring buyers to consider alternative (and more affordable) types of housing with less competition.
“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.”
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As GTA condo sales exploded, prices grew alongside it, but not quite at the same rate. In 2020, the average condo sale price was $640,274. In 2021, that price rose to $688,137 — a 7.5% difference.
Condos now also make up a larger proportion of total home sales in the GTA, accounting for 34.5% of sales compared to 30.8% in 2020.