A record fourth quarter capped off a record year for Toronto condo and loft sales in 2021. While condo and loft listings were high from a historic perspective, it was not a record year on the supply side of the market. In fact, condo and loft buyers experienced some of the tightest market conditions in 20 years. Strong competition between buyers led to an acceleration in price growth to a new record, including double-digit annual growth reported in Q4 2021.
A summary of the Q4 2021 condo market is as follows:
- Q4 2021 condo and loft transactions amounted to a record 7,815 in Toronto – up almost 21% compared to 6,462 in Q4 2020.
- On the supply side, the number of new listings in Q4 2021 was down almost 29% to 8,758.
- With condo and loft 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% to $710,087.
The resurgence in the condo market was a key real estate story for 2021. First-time buyers, who arguably remained on the sidelines longer than existing home buyers during the earlier stages of the pandemic, reentered the market with vigour last year. Condo and loft demand will be robust in 2022 as well, with the expected increases in immigration and temporary migration into the Toronto.
In the early days of the pandemic, we saw a spike in condo and loft listings and a brief lull in condo and loft 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.
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”