Last week, I was fortunate to be included in a panel of real estate experts for a frank discussion on the market, hosted by Post City and the Rotman School of Management. One of the panellists was a developer with ties to the city centre, Scarborough and Hamilton, and his take on the market was quite interesting. He said that in his 35-year career, he has never seen an uptick in demand for condominiums like he is witnessing right now.
Certainly, we observed a bit of a softening in price points and demand for high-rise in the fall, but since December, the condo market has been screaming hot. TRREB just released its sales figures for February, and condo sales on the MLS were up 64% from a year ago. In January, they were up 85% year-over-year, in both the 416 and the suburbs. And remember, we’re comparing recent sales to months that took place before the Covid-era, before sales stalled and demand for low-density, suburban property became the trend.
Of course, rental rates are down from last year. People are still working from home, there is a lack of immigration, and there is a drop in student demand for housing. We are seeing rental vacancies at levels that we haven’t experienced in recent years, but I would never bet against the downtown core, and the recent surge in demand for condominiums is proof of that. This is a sector of the market to definitely keep your eyes on in the months ahead.
