The upward trend in market activity that became apparent in Q3 might last well into 2022
The Greater Toronto Area’s condo segment has finally returned to an upward trend, with activity reaching a new record high in the third quarter, according to a new market survey by Urbanation.
A total of 7,773 new condo units were sold in the GTA in Q3, amounting to an annual increase of 22%. The City of Toronto saw the strongest proportional sales growth at 40%, although the region’s suburban enclaves accounted for more than half of the total sales during the quarter.
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The trend was impelled by buyers continuing to be magnetized by the segment’s greater (on average) amount of living space that could be repurposed for remote-working purposes, Urbanation said.
“With inventories declining further in Q3, this momentum is likely to sustain in the coming months, although high prices and greater prospects for interest rate increases may eventually start to weigh on demand,” said Shaun Hildebrand, president of Urbanation.
The region also registered a decline in its unsold condo inventory, in turn pushing up the average price of new condos on sale by 10% to an unprecedented $1,231 per square foot.
