There have been many questions lately about how the real estate market has been doing and what is to come this year. Unfortunately I don’t have a crystal ball, but now that January has come and gone I think we have a pretty good idea of some of the trends we will see this year.
The luxury condo market started the year off exceptionally strong, with more sales of condos over $2,000,000 than any past January. Despite the lockdowns and restrictions across Ontario, Toronto real estate continues to push forward with no slow down in sight. More than double the number of condos sold above $2m last month compared to January 2021 and still more than the record set for January back in 2020 (pre-pandemic).
There has been exceptional demand for larger luxury properties; however the number of new listings has continued to stay low, leading to substantial price increases across the city. A total of 42 new listings above $2m came to the market in January, roughly the same number as last year, but the average listing price is up by over 16%. The increase in listing prices clearly shows that sellers are attempting to maximize on the strong demand and, in many cases, are selling successfully at record pricing. The average sale price on a $/sq ft basis was up nearly 6% from January 2020 to $1,350 per square foot.
As I look forward to what 2022 will bring for the luxury condo market, it seems that a lack of properties available is by far the most significant obstacle ahead. As a result, property values will continue to see substantial appreciation, and demand for prime real estate will stay strong.
For more information on the market or any questions you may have on what to expect over the next few months, please feel free to give me a call or send an email.
Dylan Donovan, Broker
Chestnut Park Real Estate
*Numbers are based on condo apartment above $2,000,000 in area C01, C02, C08 & C09 between January 1st and January 31st, 2022 as reported by the Toronto Real Estate Board.