Toronto residents switch from urban condos to suburbs

A wave of Toronto residents saying goodbye to their downtown condos and looking for larger spaces and more affordable properties, are leading to a domino effect in Southern Ontario, even as far as Fort Erie.

When the pandemic started, working from home became the new norm for thousands, and the first domino effect was seen in Toronto’s downtown core as many residents left their condos trying to find affordable houses with backyards and a space for their home offices.

As a result, many moved to Hamilton, as it’s still close enough to Toronto and offers more affordable options. The demand led to a sharp activity increase at Hamilton’s real estate market, and many decided to move to the Niagara Region, where the same phenomenon started happening.

Meanwhile, Toronto’s condo market is finally cooling off, which was impossible to expect at the start of 2020. Condo sales in Toronto fell by more than 50% annually in the second quarter, says the Toronto Regional Real Estate Board. The number of pre-sale condos was down by 85%, as investors who tend to account for two-thirds of these units’ sales, are very cautious now.

The attractiveness of those properties always came down to the necessity to forget about larger spaces in order to live in the centre of the city with restaurants, concerts, bars and yes employment options. However, as offices are closed, concerts and sporting events are cancelled, it’s another deal already.

Millennials account for most of those who leave Toronto for Hamilton, where the average real estate price was $662,257 at the end of August, says the Realtors Association of Hamilton-Burlington. This extra interest from Toronto has made it one of the hottest markets in the province.

According to Danielle Grant from Ambitious Realty Advisors, we can see a market environment where buyers must be ready to bid $50,000-$100,000 above prices and face inspections in order to purchase their own house.