TORONTO – A record fourth quarter capped off a record year for condominium apartment sales in 2021. While condo listings were high from a historic perspective, it was not a record year on the supply side of the market. In fact, condo buyers experienced.
In the fourth quarter of 2021, sales of condominium apartments set a record. Maybe it wasn't a record year from a market supply perspective, but condo listings are at an all-time high. Condo buyers experience the tightest market conditions in 20 years. Intense competition among sellers caused price growth to accelerate until a new record.
A summary of the Q4 2021 condo market is as follows:
- Q4 2021 condo apartment transactions amounted to a record 7,815 in the GTA – up almost 21 per cent compared to 6,462 in Q4 2020.
- On the supply side, the number of new listings entered into TRREB’s MLS® System in Q4 2021 was down almost 29 per cent to 8,758.
- With condo sales up substantially year-over-year in Q4 and new listings down substantially, standing inventory (active listings) at the end of December 2021 was down by almost two-thirds compared to the end of 2021.
- Very tight market conditions, with strong competition between buyers, resulted in an acceleration in price growth in the fourth quarter, pushing the average selling price up by 16.4 per cent to $710,087.
The recovery of the Condon market is a key point for real estate in 2021. In the early stages of the Covid-19 pandemic, first-time buyers were often on the sidelines until they re-entered the market in 2021. Demand for condos will also continue to be bullish in 2022 as immigrants and temporary immigrants enter the GTA.
Just as Jason Mercer, the TRREB Chief Market Analyst, said “In the early days of the pandemic, we saw a spike in condominium apartment listings and a brief lull in condo price growth. The situation reversed dramatically in 2021, with the number of available units dropping in the face of strong demand. The resulting double-digit price growth will carry forward into 2022”.
Toronto Regional Real Estate Board (2022). "Condon Market Report Fourth Quarter of 2021". https://trreb.ca/files/market-stats/condo reports/condo_report_Q4-2021.pdf