Are you thinking of putting your condo on the market? If so, you may be wondering if now is the right time to take this step. I’ve been getting this question from would-be sellers a lot lately. The truth is, we live in uncertain times. As a result, it may seem like everything you thought you knew about Toronto real estate has been flipped on its head—but has it?
If you’re thinking of selling your Toronto condo in the near future, here’s what you should know…
Factors to Consider
Let’s start with the obvious: we’re in the midst of a global pandemic. From one day to the next, our way of life is subject to change. Often, there are implications for the economy—and the housing market. Of course, the changes haven’t always been what we expected.
For much of the pandemic, home sales and prices soared. Many prospective condo buyers saw their priorities shift. Being close to trendy restaurants, retail, nightlife, and entertainment may have been major draws before. But during lockdown, having plenty of indoor and outdoor space became far more attractive.
Needless to say, things have changed. The condo market has been rebounding this year, and that trend will likely continue. The steady flow of newcomers to Toronto is also expected to resume. Previous estimates put the city’s projected population at 10 million by 2046. Even though the pandemic impacted this growth (at least in the short term), we’re already seeing an uptick in the number of people moving here.
It’s worth noting that the real estate market began to cool during the third quarter of 2021, but there’s still plenty of demand. Yes, we’re facing a different set of potential challenges with the rise of new variants. But increased vaccination rates have allowed the economy to reopen—and that’s made central, condo living a highly-appealing prospect.
Given the many twists and turns we all experienced during the past couple of years, it can be hard to make sense of current conditions. To see the bigger picture, let’s look at the market.
Interested in learning more about selling your condo? Check out some of my helpful resources on the subject below.
- 5 Tips For Selling Your Condo Quickly
- Selling Your Condo? Here Are the Costs to Expect.
- 6 Times to Consider Selling Your Investment Condo
The Current Market
According to the Toronto Regional Real Estate Board (TRREB), the average selling price for local homes this October was up 19.3 per cent year over year. That’s an impressive leap, to be sure!
Meanwhile, listings were down 34.1 per cent and average days on market dropped 25 per cent (from 24 in October of 2020 to 18 in the same month of this year). In other words, demand was high, even as we observed a slight cooling effect.
Of course, we’re talking about the condo market, so let’s get a little more granular. The third quarter of this year was quite different from the same period of last year. Condo sales rose 10.6 per cent (from 7,060 to 7,810), while the average selling price increased by 8.9% (from $633,596 to $689,831).
Needless to say, the condo market’s rebound has been significant—and it’s set to continue. Low inventory is likely to further boost demand, which is bound to put upward pressure on prices.
Downtown is unique, and so is selling a condo here. Learn more about the process and how to make the most of your investment here!
A Buyer’s Perspective
If the numbers aren’t enough to convince you that the condo market looks bright, put yourself in the shoes of buyers. There’s good reason for purchasers to look for the perfect unit right now.
First off, there’s the fact that Toronto real estate is a great investment. Sure, the last couple of years have been unpredictable. But they’ve also proved that no matter what happens, home prices in this city are bound to weather the storms—and appreciate significantly. Buyers are coming back around to that perspective now that they’re seeing renewed demand for units.
As the most affordable property type, condos have long been incredibly attractive to first-timers. While many buyers who could afford it were focused on detached properties during lockdown, some saw their chances of making a smart home investment fall out of reach.
The good news is, embracing an urban lifestyle at the centre of it all has become highly desirable once again. From lively amenities to quick commutes to work (for those who have returned to the office), there’s no shortage of reasons why buyers (including those making their first purchase) are opting for units in the city’s core.
The bottom line
There’s no denying that the last couple of years have been unusual ones for real estate markets around the world, and Toronto has been no exception. As a result, some would-be sellers have been sitting on the sidelines.
If you’re ready to sell your condo, you may want to seriously consider it. Keep in mind that we’re in a seller’s market where prices have remained relatively high in recent months. The number of new listings isn’t meeting demand—but conditions won’t necessarily stay this competitive!
Want to talk about selling your condo? Whether you’re ready to get started or have questions about what to expect, you can get in touch to start a discussion here.