Toronto housing prices in the last two years have ebbed and flowed. After hitting record price highs early in 2022, they dropped as the year went on and the market evolved. Interest rate hikes had a huge impact on activity in the housing market and the prices of a home in the city declined as buyers sat on the sidelines.
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As the Bank of Canada has held rates for the last few months, buyers have found more confidence in approaching the market and as a result of the growing demand and the continued lack of supply, housing prices are once again on the rise. Condo apartments, generally seen as the most affordable home type, have hit a price of $724,118 in Toronto. But are Torontonians looking for condos in that price range, or have they opted for greater affordability?
To find out, Zoocasa analyzed the available data of condo apartment sales in the last two years to find out which price bracket was seeing the greatest buyer activity.
Canadians are Opting for Mid-Priced Condos
Condos between $500,000 and $700,000 are currently experiencing the most activity. There were 668 condo sales in Toronto in April 2023 in the $600,000 – $699,999 range, while 528 condos sold in the price range of $500,000 to $599,999. Inventory is also highest for condo apartments in this price range, which may explain why there were more sales, but this also tends to be an entry-level buyer-friendly price point. Overall, the price of the average Toronto condo has increased by 3% month-over-month despite being down by 8% compared to last year’s price.
The number of sales of homes between $400,000 and $499,999 and $500,000 and $599,999, meanwhile, has improved massively in the last year, with sales increasing by 141.18% and 92% respectively. While affordability is key for many buyers, there are so few buying homes between the prices of $0 and $300,000 because of the lack of availability of properties in this price range.
Homes Above the Average Price are Still Trading Hands
Despite the demand for more affordable properties, condos over the average price are still selling. There were 339 sales for condos sold between $700,000 and $799,999, 209 for condos between $800,000 and $899,999 and 103 sold between the prices of $900,000 and $999,999. The luxury condo market is also holding strong, with 170 condos sold in April 2023 for over $1,000,000.
When comparing the number of sales to a year ago, the declines aren’t nearly as sharp as they could have been, largely in part to the influence of interest rate hikes. When looking at April, the majority of price ranges we covered have seen a drop in sales numbers, with a 37.11% drop in the $700,000 to $799,999 range, and a 31.33% decline in the $900,000 to $999,999 range. Compared to March 2022, however, those price ranges have dropped by 60.49% and 57.61% respectively.
If you’re interested in buying a condo in Toronto, give us a call to discuss your wish list for your dream condo apartment!
