Only 3,459 condos sold across the Toronto region in the second quarter of 2020, a 50 percent decline from the same three-month period a year prior.
Despite this historic decline in sales activity, the condo resale market still managed a 5.1 percent price increase during the same period, bumping the average condo selling price across the GTA to $619,707.
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Market activity captured by this second quarter data, released today by the Toronto Regional Real Estate Board (TRREB), is expected to be the worst affected by the COVID-19-related business shutdowns and general economic uncertainty.
While the Toronto region’s housing market mounted a strong rebound in June, it was far from enough to save the quarter. Even as the overall market improved in the final month of the quarter, market commentators noted that the condo segment was noticeably sluggish in June compared to the detached homes segment, especially in the City of Toronto.
Condo listings that hit the market in the second quarter of 2020 also declined significantly compared to the same period a year earlier, down 21.6 percent to 8,717. The connection between new listings and sales is an important one, as it links condo supply and buyer demand. If new listings start to rise at a much faster rate while sales remain depressed, prices will invariably be affected.
“It will be important to watch the relationship between condominium apartment sales and new listings as we move through the second half of 2020,” said Jason Mercer, TRREB’s Chief Market Analyst, in a media release.
“If economic recovery is sustained, the demand for condo apartments will improve. However, the prospect of stricter regulations on short-term rentals and softer rental market conditions could fuel increased listings of investor-held units. If we see more balanced market conditions, condo price growth could be more moderate compared to low-rise home types,” Mercer continued.
TRREB President Lisa Patel struck an optimistic tone when looking ahead to the late summer and early fall months. In the media release, she said condo sales are on the right track for an improvement in the third quarter with the solid showing in June indicating a trend toward market recovery.