Is 2022 the 'Year of the Condo'?
Real estate prices in the Greater Toronto Area have skyrocketed in the last few years. Especially the condominium market has seen exponential growth and has been extremely hot ever since. Some say that condos will become the 'dark horse' of the housing industry in 2022.
Given the consistent rise in GTA condo prices since the COVID-19 pandemic, we have seen the unrelentingly high cost of detached homes. Thus, it's not unrealistic to believe that we might witness a major exodus from the freehold market, further driving up condo prices.
Many people expected the epidemic to cause a massive slump in the property market, but it had the opposite effect. It's impressive, but the pandemic has proven to be a tremendous driver in one of the best residential real estate markets in history.
Condo prices to skyrocket
Condo prices in Toronto fell during the start of the pandemic as more residents planned their city getaway in search of more space. The ability to work remotely made their move even more effortless. However, condo prices have now recovered and are expected to continue to grow.
According to Royal LePage, the GTA will be the only location in Canada where condominium prices will outperform single-family detached homes and townhouses. Royal LePage forecasts a 12% increase in 2022 condo prices, bringing the median to $845,600, a whopping leap of $81,800 from the same time in 2021. However, the growth rate is expected to stay below 16% in 2022.
Demand at an all-time high
Throughout 2021, demand for condominiums in the GTA was robust, and it is projected to continue into this year as well. In 2022, the summer housing market will be incredibly active since many buyers are still looking for their homes. Moreover, buyers' focus will shift toward condos as single-family detached home prices are projected to soar to $1.56 million by Q4 2022 (Royal LePage). As a result, condos are expected to outperform single-family detached homes in the GTA, signalling a big year for condos.
When owning a home costs twice as much or more due to soaring prices, it's reasonable to predict that buyers with less money to spend will flock to the condo market in 2022, fueling price growth. This shift is attributed not just to the disparity in the condo and detached house prices but also to supply and demand concerns, buyer weariness, and missed opportunities.
Migration growth in the GTA
Even though many Torontonians have left the city in 2020 and 2021, inter-provincial migration has increased. More and more residents from all over Canada are relocating to the GTA. In addition, since the start of 2022, international immigration has resumed as Canada opens its borders to thousands of new migrants, further contributing to buyer demand. The market's supply is insufficient to fulfil present demand. So if you are considering selling your property, 2022 appears to be the PRIME time for sellers.
Get in touch with a member of our expert team for more information about the 2022 real estate market. Our experienced agents at The Suzy Goldstein Team are here to assist you. Contact us today, and don't miss your shot in this piping hot seller's market!