Since the Greater Toronto Area’s last market peak four years ago, condo values have outpaced other property types in the region.
Condo values in the GTA have appreciated by 44 percent when compared to 2017’s housing peak, according to new research published today by Properly.
Using their AI-powered Instant Estimate home value calculator, the tech-enabled real estate brokerage compared sale prices of GTA homes during the last housing peak between January and April 2017 to current Instant Estimate values recorded on June 1st, 2021.
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During the 2017 housing peak, the median sold price of a GTA condo hit $437,000, according to Properly. As of this month, the median Instant Estimate value is calculated to be $625,927, representing a 44 percent price gain.
“This past year, condo sales were hit the hardest by the pandemic. While sales are now back up to pre-pandemic levels, it’s relieving for condo owners to know that their investments have appreciated significantly over time,” said Anshul Ruparell, co-founder and CEO of Properly, in the report. “Moving forward, it’s forecasted that solid growth in condo sales will continue as pandemic restrictions ease.”
In addition to their high value appreciation, Properly noted in its report that Toronto condo sales are also rebounding after a sluggish, months-long performance caused by the pandemic. During the first quarter of 2021, 2,886 units were sold — two-and-a-half-times the quarterly average recorded from the second quarter of 2020 through the fourth, Properly says. This also outperforms pre-pandemic sales numbers from 2020’s first quarter, when 2,829 units were sold. A standstill in immigration and changing buyer preferences were often cited as the main causes for the delayed recovery of Toronto’s condo sales in 2020, according to general market commentary.
Although GTA condos experienced the greatest value appreciation, significant increases were recorded across all property types.
Townhouses with condo fees ranked second, with prices soaring 33 percent from the 2017 peak of $552,000 to today’s Instant Estimate Value of $708,782. Freehold townhomes and semi-detached homes reported similar levels of value growth at 26 percent and 27 percent, respectively. The median sold price of a freehold townhome rose from $700,000 during the 2017 peak to the Instant Estimate value of $888,993, and from $750,000 in 2017 to $951,726 in June 2021 for semi-detached residences.
Detached homes recorded the smallest price appreciation in the Toronto region, according to Properly. The median sold price of a detached dwelling was $966,000 during the 2017 housing peak. According to Properly’s Instant Estimate, the typical GTA detached home value stands at $1,181,973 in June 2021, a 21 percent increase.
Between all property types, GTA home values appreciated 31 percent from the 2017 peak to June 2021, with property values growing from $685,000 to $877,192.
GTA home values are expected to continue climbing, with the latest Housing Market Outlook from the Candian Mortgage and Housing Corporation (CMHC) predicting that the average home in Toronto will cost $275,000 more within two years, Properly notes.
“Following the extremely hot spring market we’ve just seen, we’re beginning to see a slight cooling as we head into the slower summer months,” said Ruparell in the report. “By comparing sale prices during the 2017 peak to today, we hope to shed light on how properties can perform over time.”