Tuesday, January 31, 2023
  • Home
  • News
  • Privacy Policy
  • Terms of Use
  • Cookie Policy
  • Disclaimer
  • DMCA Notice
  • Contact
No Result
View All Result
No Result
View All Result
Home News

GTA Condo Prices Poised to Grow Faster Than Houses in 2022

by Editor
February 15, 2022
in News
GTA Condo Prices Poised to Grow Faster Than Houses in 2022

Condo prices could see a big surge in value this year as low-rise homes become even more financially prohibitive and housing demand continues outpacing supply.

Online brokerage Zoocasa says the spread between high- and low-rise housing is the second largest it has ever been. Comparing both segments’ prices in Toronto between 2011 and 2021, condos cost half of what detached houses did. According to the report, the ratio has increased from 1.99 to 2.33 and hasn’t been this high since the B-20 mortgage stress test was introduced in January 2017, months before Ontario introduced a foreign buyer levy of 15%, to subdue the rising rate of price appreciation for GTA houses.

“Usually, when we see detached price gains slow, condos will grow. Heading into the new year, major bodies like the Toronto Regional Real Estate Board are expecting price appreciation to moderate from the record pace we saw in 2021, and rising interest rates will only make the most affordable homes on the market more attractive. I’m anticipating that we’re going to see a big year for condos in the region,” Zoocasa realtor Ross Aitken said.

“In the first month of 2022 alone, the average price for a condo in the region grew $36,000. The market is moving quickly, in no small part due to buyers being optimistic and excited for a return to enjoy an urban lifestyle after nearly two years of recurring lockdowns.”

Higher Mortgage Rates to Fuel Demand for Cheapest Home Types

Zoocasa has GTA-based detached homes averaging $1,741,318 and condos at $748,566, which it speculates is partly the result of the province-wide race for space in the COVID-19 era. Moreover, while condos’ appreciation decelerated through 2020, that changed by January 2021 when condos sales rose by 90% year over year during the first two weeks of the month.

With the spread this wide, there’s strong reason to anticipate more growth in the GTA’s condo market. For starters, the Bank of Canada is widely believed to hike its overnight interest rate in March as the first of six increases over the next 18 months, which will remove more buyers from the single-family detached market, as happened in 2018 when rates last rose, and also when prices were lower. When interest rates last rose, home sales across all product types in the GTA slowed down before growing for condo townhouses and apartments by 9% and 10%, respectively, while detached home prices only appreciated by 4%. Similarly, Zoocasa believes condos will lead growth in all housing segments in 2022.

Read: Take a (Rate) Hike: Optimism in Canada’s Housing Market Hits All-Time High

“Taking cues from 2018, when interest rates rose last, we can predict that the most affordable price points in the market, like condos and townhomes, will lead growth in 2022 as a result of higher borrowing costs,” Zoocasa CEO Lauren Haw said.

Life to Return to Urban Cores

The rescission of pandemic restrictions will also make urban living more appealing. Just as when Toronto saw an exodus during the early months of the COVID-19-induced lockdown, the opposite occurring is a reasonable expectation. As a matter of fact, numerous provinces have already scrapped some restrictions, with Ontario announcing Monday it is following suit. Moreover, excessive rental demand has already returned to the city, a sign that the ownership market is taking off, as well, as downtown Toronto resumes its status as arguably the top destination in Ontario to live, work and play.

So far this year, the housing market across all product types has been fierce, Aitken says.

“What today’s buyer needs to know is that success really starts with due diligence. Properties are moving quickly in this market, if you’re serious you need to be able to compete. This means having your mortgage pre-approval completed and your lawyer ready to review the status certificate.”

The post GTA Condo Prices Poised to Grow Faster Than Houses in 2022 appeared first on STOREYS.

ShareTweetShare

Related Posts

2 Growth Stocks to Buy and Hold Forever
News

3 Canadian Stocks to Buy That Could be Massive Long-Term Winners

October 13, 2022
Can You Retire a Millionaire by Just Investing in the S&P 500?
News

Can You Retire a Millionaire by Just Investing in the S&P 500?

March 27, 2022
Yes, Canada Has a Housing Affordability Crisis. Is It the Federal Government’s Fault?
News

Yes, Canada Has a Housing Affordability Crisis. Is It the Federal Government’s Fault?

March 27, 2022
21 Toronto Condo Launches You Need to Know About This Spring
News

21 Toronto Condo Launches You Need to Know About This Spring

March 27, 2022
“Slightly More Balanced Market” On the Way For the GTA This Spring
News

“Slightly More Balanced Market” On the Way For the GTA This Spring

March 27, 2022
New Ontario Data Standard Will “Even the Playing Field” For Housing Development Approvals
News

New Ontario Data Standard Will “Even the Playing Field” For Housing Development Approvals

March 26, 2022

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Most Read

Housing Market Created Good Alternative for Buyers with A number of Properties

Nearly $30 Billion in GTA Housing Linked to Money Laundering

November 18, 2021
How  Canadians can Protect their Money From Inflation

How Canadians can Protect their Money From Inflation

November 30, 2021
That is How A lot it Prices for a Household of 4 to ‘Thrive’ within the GTA

Are Investors the Cause, or Just the Blame, Behind Ontario’s Outrageous Housing Market?

November 26, 2021
A Transformation is on the Horizon for Toronto’s Jane and Finch Neighbourhood

A Transformation is on the Horizon for Toronto’s Jane and Finch Neighbourhood

November 12, 2021
Today’s Housing Market Looks a Lot Like 2017’s… That Should Worry Everyone

Today’s Housing Market Looks a Lot Like 2017’s… That Should Worry Everyone

February 16, 2022
Canadian Start-Up Aims to Deliver Flexible Payment Options for Renters

Canadian Start-Up Aims to Deliver Flexible Payment Options for Renters

January 22, 2022
  • Home
  • News
  • Privacy Policy
  • Terms of Use
  • Cookie Policy
  • Disclaimer
  • DMCA Notice
  • Contact

Copyright © 2021 The Canadian Investor | All Rights Reserved

No Result
View All Result
  • Home
  • News
  • Privacy Policy
  • Terms of Use
  • Cookie Policy
  • Disclaimer
  • DMCA Notice
  • Contact

Copyright © 2021 The Canadian Investor | All Rights Reserved