The Toronto condo market has seen a significant jump in inventory, with a staggering 80% increase in available units compared to last year. This surge in supply has left many wondering about the future of the city’s real estate market, as the COVID-19 pandemic continues to impact the industry. While the increase in inventory may be seen as a sign of a slowing market, some experts believe that it could actually be a positive development for both buyers and sellers.
According to Shaun Hildebrand, President of Urbanation, a real estate market research firm, the increased inventory is a result of developers rushing to complete and sell their projects amid the uncertainty caused by the pandemic. This rush has led to a record number of condo completions in the city, adding more units to the market than in previous years. Hildebrand also noted that the pandemic has caused a shift in buyer preferences, with many now looking for larger units with more space as they adapt to remote work and spend more time at home.
The increase in inventory has also led to a decrease in condo prices, with the average price per square foot dropping by 5% compared to last year. This decline in prices may be a cause for concern for some sellers, but it could also present an opportunity for buyers looking to enter the market at a more affordable price point. Hildebrand emphasized that the Toronto condo market remains competitive, with prices still higher than in other major Canadian cities.
Despite the increase in inventory, some experts believe that the Toronto condo market is far from oversaturated. Benjamin Tal, Deputy Chief Economist at CIBC World Markets, pointed out that the demand for condos in Toronto remains strong, as the city continues to attract new residents and investors. Tal highlighted the city’s growing population and robust job market as factors that contribute to the continued demand for housing in Toronto.
While the COVID-19 pandemic has undoubtedly had an impact on the Toronto condo market, experts remain optimistic about its resilience. Many believe that the increased inventory and lower prices will ultimately benefit both buyers and sellers, as the market adjusts to the new realities brought about by the pandemic. As the city continues to navigate the challenges presented by COVID-19, the future of the Toronto condo market remains uncertain, but experts are confident that it will remain a strong and attractive option for buyers and investors alike.
