The COVID-19 pandemic has changed what people want in their living space.
Now, more condominiums are on the market in Toronto, as people look for bigger homes.
A recent report from Zoocasa found that the parts of the city with the highest concentration of condo apartments experienced the most significant increase in active listings on a year-over-year basis.
Taking first place is Toronto’s C01 neighbourhood, which covers Downtown, the Entertainment District, CityPlace, and Liberty Village.
The region saw a drastic 219% increase or had 3.2 times more active listings at the end of December 2020 compared to the previous year.
Specifically, there were 989 active listings in C01 in December compared to 310 in December 2019. The median sales price dropped 9%, or $58,750, to $611,250.
According to Anthony Tomasone, a Zoocasa real estate agent in Toronto, the drastic increase in condo inventory in C01 is notable.
“In 2019, C01 was one of the most competitive neighbourhoods in the city. Seeing new listings double and active listings triple in the span of a year is a testament to the impact that COVID-19 has had on homebuyers in the short run,” he said.
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In second place is the C08 neighbourhood, encompassing Regent Park, St. James Town, and Corktown, where the median home price dipped 10% to $597,500.
There was a 239% increase in active listings compared to December 2019, with 315 or 3.4 times more listings available in the neighbourhood at the end of 2020.
“Of the top ten neighbourhoods with the greatest increase in active listings at the end of 2020, both C01 and C08 noted the biggest annual decline in the condo median price,” the report added.
And in third place is C15, which includes Hillcrest Village and Bayview Village, where despite a 156% increase in active listings, median home prices “remained relatively steady” – posting a 4% increase to $531,000.
“For buyers that are looking to get a foothold into the market and thinking about the long term, now might be a good opportunity to consider a condo, particularly in the downtown core. Compared to the same time the year before, buyers have more options and less competition, better prices, and lower interest rates – all favourable conditions for first-time buyers that may otherwise have been priced out of the market,” said Tomasone.
While the market is going through a shift with the pandemic, when it comes to long-term investment, buying a condo now is advisable given more options and lower interest rates.