In line with the general market trends, Toronto condo and loft sales and the average selling price were lower in the first quarter of 2023 compared to the same period in 2022. However, strong population growth, tight rental market conditions and improved first-time buying intentions will result in renewed growth in condo sales moving forward.
There were 4,519 Toronto condo and loft sales reported in Q1 2023 – down by 42.9% compared to 7,909 sales reported in Q1 2022. Over the same period, new listings were also down, but by a lesser annual rate of 19.9%. This means that condo buyers did experience more choice compared to the first three months of 2022.
Higher borrowing costs caused a temporary lull in Toronto condo and loft buying activity. However, recent Ipsos polling for TRREB suggests that first-time buying activity will pick up noticeably this year due, at least in part, to double-digit rent increases over the past two years. Despite increased interest rates, mortgage payments on a condo are now closer to the cost of renting for a lot of potential buyers. In addition, homeownership has the added benefits of equity growth and asset appreciation over the long term.
The average price for Toronto condos and lofts sold in Q1 2023 was $700,566 – down 11.4% compared to the average of $790,418 in Q1 2022. Approximately two-thirds of Toronto condo and loft sales took place in the City of Toronto. The average selling price in Toronto was $726,664 in Q1 2023 – down by 10.3% compared to the same period a year earlier.
Housing market conditions have been tightening up in Toronto. Toronto condo and loft sales and selling prices are expected to improve as we move through 2023. Based on the expectation that first-time buying activity will increase this year, look for the Toronto condo and loft segment to be one of the recovery leaders in terms of sales and price growth.
If you want to buy or sell a Toronto condo or loft, contact Casey Ragan at 416-486-5588 or by email at casey@remaxhallmark.com
Casey Ragan
“Toronto’s Condo Authority”