Condo market is cooling down with Toronto home prices decreasing

Last month, Canada’s largest real estate market reported one more month of double-digit sales increase, while we still saw an on-going weakness in its previously hot condo market.

According to the Toronto Regional Real Estate Board (TRREB), there were 8,766 properties sold across the Greater Toronto Area in November, marking an annual gain of 24.3%, but a monthly decline of 17%.

The average home price in the GTA was $955,615, which is 13.3% higher than in November 2019, but still lower, than October’s $968,318.

Detached houses were most popular last month, especially outside the city of Toronto, with sales going up by 33.6% annually in the 905 area code, which includes Mississauga and Brampton.

Meanwhile, the condo market faced a different situation, as sales in Toronto rose by only 0.8% from a year ago and the average prices went down by 3% to $640,208. The market conditions were more preferable for buyers due to a strong supply. Last month, there were 5,018 active listings for condos in Toronto, compared to 1,707 seen a year ago.

Nevertheless, TRREB believes the conditions will re-balance once the pandemic is over.

“The condo market is definitely more balanced now than in previous years, with some buyers benefitting from lower prices. But it could be only a short-term trend,” – noted TRREB Chief Market Analyst Jason Mercer.

“As soon as the pandemic is over, we’ll see a rebound of population growth, both from immigration and a return of non-permanent residents. As a result, the demand for renting and buying condos will grow”.