new blog post<\/a>, broker of record and founder of Strata.ca, Robert Van Rhijn, commented on the dearth of GTA condo listings and its impact on prices and overall sentiments.<\/p>\n\nGTA condo listings peaked in October 2020 with a total of 8,428 units on the market at that time, according to Strata.ca. Since then, listings have been on a toward trajectory. In January, there were a total of 1,415 condo listings on the market, a sharp 63 per cent decrease from January 2021, which reported 3,811 available listings just 12 months ago.<\/p>\n
\u201cIt\u2019s not necessarily that a crush of buyers are flooding the market, although you could argue there is some of that happening,\u201d explained Van Rhijn. \u201cBut rather, the competitive nature of today\u2019s landscape is being fuelled by historically low inventory levels that continue to persist.\u201d<\/p>\n
Lack of listings keeps prices rising<\/h2>\n
Naturally, a shortage of listings is likely forcing condo prices higher.<\/p>\n
In October 2020, GTA condo prices hit their lowest level since the start of the COVID-19 pandemic, falling to an average of $678 per-square-foot (PSF). As supply has since dwindled, the average price of a condo has been on the rise, jumping 34 per cent in 15 months to $910 PSF.<\/p>\n
Van Rhijn noted that while it remains unclear whether prices will eventually level out, chronically-low inventory will \u201conly exacerbate the issue.\u201d Still, some agents at the brokerage say that an uptick of new listings will arrive in the coming months.<\/p>\n
\u201cI suspect we\u2019ll see a lot of new inventory in March as sellers look to cash out during the busy spring market,\u201d said Milan Mitrovic, a realtor with Strata.ca. \u201cMany of those buyers will have purchased something and exited the market by spring, leading to less competition and a fairer playing field overall.\u201d<\/p>\n
Off-season, FOMO fueling sentiments<\/h2>\n
From interest rates to wintery weather, there\u2019s a number of factors shaping buyer and seller sentiments right now that could be contributing to the lack of condo listings.<\/p>\n
For one, Van Rhijn explains that sellers don\u2019t want to list their properties right now during the winter, and unless they have no other option, are usually advised to wait until the spring market. The ongoing Omicron variant is also another point of concern.<\/p>\n
\u201cOmicron is still dominating the headlines, so some of my seller clients are closely monitoring how ongoing restrictions may impact the market,\u201d said Mitrovic. \u201cAnd then there are others who don\u2019t want to list because they\u2019re simply uncomfortable with people walking through their home when infection rates are still high. Whatever the reason, Omicron is making people think twice about listing, which is driving down inventory rates even further.\u201d<\/p>\n
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<\/a>Photo:\u00a0Lucas George Wendt<\/a>\u00a0\/ Unsplash<\/a><\/em><\/p>\n