It feels like prices are soaring in every corner of the Toronto real estate market, but a new report from Strata.ca found that one particular type of condo is experiencing by far the greatest increase: three-bedroom condos.
The condo market, in general, has actually seen some cooling off in recent months, Strata.ca says, but three-bedroom units remain an exception. Since March alone, the average sale price of three-bedroom condos has jumped a whopping 30%, bringing it up to $905,220.
Strata.ca agent Francisco Hiebert says he’s not surprised to see this, as those who left the city during the pandemic are likely starting to return.
“Many workplaces will be doing a hybrid of remote work, plus a few days in the office,” Hiebert said. “So now that people know what their jobs will look like post-pandemic, a lot of them are returning to the city to avoid long commutes.”
The reason for the three-bedroom boom, in particular, can be attributed to the fact that many aspiring homebuyers are being priced out of the extremely competitive single-family home market and are looking for the next best thing.
“Since freeholds remain at the heart of a very competitive market, a lot of people who need the three bedrooms are priced out,” said Strata.ca realtor Sam Massoudi, adding that with three-bedroom condos, “all that space can be used for a family with two children…or a family with one child, plus a home office. Aside from freehold houses, this really is the next best thing.”
- See also:
Unfortunately, three-bedroom condos have become a rarity in the Toronto real estate market, with inventory levels trending downward once again since their peak in April. And agent Osman Omaid says it’s not just buyers who are feeling the heat.
“When it comes to these rare three-bedroom units, renters also want in,” Omaid said. “With universities and colleges potentially gearing up for in-person learning, there are tons of students competing for these larger units, too.”
Hiebert agreed, saying that as COVID-19 cases continue to drop and Toronto opens up, an even greater demand for three-bedroom units should be expected in the months ahead.