Toronto Real Estate Market Update: March 2021
March 2, 2021
Picture it. Toronto, October 2020. The condo market is stagnant. Nothing is selling. Listings are up for months on end, price reductions mean nothing. Sellers take their properties off the market rather than have them linger.
Fast forward two short months: January and February 2021. For some reason, there seems to be a pent-up demand that is driving a lot of activity in the market and generating a sense of urgency among buyers. Even smaller condos that were unsellable in the fall seem to be moving again.
Case in point: A listing I had last fall in the Fort York area wasn’t selling so the seller took it off the market. We were planning on bringing it back on to MLS this spring but out of the blue I had a call from a realtor whose clients are interested, having seen the old listing. The prospective buyer has sold a property and there’s nothing available at their price range.
At the moment, super low borrowing rates and lack of inventory are definitely part of the issue as to to why the market is moving so quickly right now – of course, the usual trajectory of the spring market is that more properties get listed as the weather gets nicer and we get further into spring. That usually eases the constraints of demand.
There are definitely still opportunities in the lower-end market for condos and in multi-unit homes too. Many buyers are gravitating towards single family homes right now, but it is a trend as well that buyers are looking for homes that can house multiple generations. If we have to continue to isolate, it certainly makes life easier when everybody is sharing the same space.
The investor market for multi-unit homes is not as active as it was because the rental market has softened. But if you’re looking at a long-term investment, there is money to be made.
Both single family homes and townhomes are flying off the shelves and that’s where people are paying top dollar.
Much of the time, a property only moves quickly when it’s in a popular neighbourhood and has been well renovated and updated, but that’s not the case right now.
A townhouse in Liberty Village which sold recently had been on the market for months at different prices. One of the reasons it wasn’t selling at a higher price point is that it clearly needed some work. It returned to the market this year at what I thought was a reasonable price. The home received several offers and the sellers achieved way over asking.
Another example of success was a King West stacked townhouse was listed quite reasonably and sold well over asking. The most recent sale for a similar unit had been for just over $760K and this one sold for well over $800K. That’s a lot of money for a home with cracked tiles and only one bathroom! Regardless of it’s condition, it’s a popular style of home in a very popular neighbourhood… Right now, if you’re looking for something everybody else wants, you may just have to fight for it.
You may be wondering, if condos are selling so quickly, why did the average price go down in January? Simply because more smaller units than larger units were sold. A lot of one bedroom condos that were being rented out came onto the market. Rest assured, the average price per square foot is still holding steady if not growing, depending on the ‘hood.
It’s an interesting time to be in the real estate market as things are constantly changing. If you have any questions about what your home may be worth, please get in touch.