In the Greater Toronto Area (GTA), the price of a home is set to increase even more in 2021.
During the same period, the median price of a standard two-storey home is expected to rise 7.5% to $1,185,800, while the median price of a condominium is forecast to increase 0.5% to $600,800.
The condominium prices only show a modest increase due to the 905-area prices offsetting the slight dip on median prices in the City of Toronto.
“Single-family homes remain in high demand. We expect lighter activity as we near the winter holidays, but if inventory does not improve in early 2021, we could have another year of strong price appreciation,” said Debra Harris, vice president of Royal LePage Real Estate Services Ltd, in the report. “Low inventory is expected to put upward pressure on prices, but we could see low unit sales if there isn’t product to sell.”
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The report notes that performance within the condominium segment is expected to remain varied with higher demand for larger units in the 905 area.
Harris added that while there has been a recent surge in condominium listings, “the historically starved Toronto condo market can withstand an increase in condo supply without significantly impacting price in the short term.”
It’s expected that resale demand for condos will be higher in the second half of 2021 due to the federal government’s new immigration targets as well as the expected return of rental demand from university students in the fall.
“Many young people returned home to save money during the pandemic, and we expect them to want to get back into city life when the vaccine becomes available. The question is whether consumer confidence in the condo market will be healthy given the surge in listings. The reality is that current inventory is much healthier than where we were last year,” said Harris.
“For the many young professionals who were discouraged by strong competition in the condo market in previous years, this window may be their opportunity to find a home they can get excited about living in.”
The GTA house price increase is slightly above the national forecast of 5% year-over-year at $746,100 in 2021, with the median price of a two-storey detached house and condominium projected to increase 6.0% and 2.25% to $890,100 and $522,700, respectively.
For now, the GTA is still ahead of the national average, proving the metropolitan area is still a hotspot for real estate even during the pandemic.