Selling prices for condos bucked the overall downward trend, while rental rates soared in the Greater Toronto Area during the fourth quarter (Q4) of 2022, according to the latest data from the Toronto Regional Real Estate Board (TRREB).
The average selling price in Q4 2022 stayed in line with the average in Q4 2021, while the number of sales more than halved.
“While condo market conditions have become more balanced over the past year, there has been enough demand relative to supply to support selling prices. On average, the condo market segment is the most affordable,” said Paul Baron, TRREB president.
Condo sales and prices
Total condo apartment sales amounted to 3,582 in Q4 2022 – down 54.1 per cent compared to Q4 2021. New listings were also down on a year-over-year basis by 14.3 per cent. The average Q4 2022 selling price was $710,520, slightly higher than the Q4 2021 average of $710,246.
TRREB notes a similar trend played out in individual regions in the GTA, with average selling prices remaining flat compared to last year.
“As immigration into Canada continues at a record pace for the foreseeable future, the GTA will welcome many new households. This should see the demand for condos, in both the ownership and rental markets, strengthen moving forward,” said TRREB Chief Market Analyst Jason Mercer.
Soaring rents
Meantime, TRREB is reporting average rents for condos continued to increase by double-digits in Q4 of 2022.
The average rent for a one-bedroom condominium apartment increased by 19 per cent to $2,503 in the fourth quarter of 2022. Over the same period, the average two-bedroom rent increased by 14.1 per cent to $3,178.
The number of condominium apartment rental transactions reported through TRREB’s MLS was down on a year-over-year basis by 19.9 per cent in Q4 of 2022.
The number of rental listings was also down over the same period, but by a lesser annual rate of 11.8 per cent.
Supply and demand
“Tight rental market conditions and strong rent increases will be the norm more often than not for the foreseeable future. On one hand, we will continue to experience strong rental demand in the GTA based on solid fundamentals. On the other hand, the persistent supply shortage will continue to result in strong competition between would-be renters, exerting upward pressure on rents,” said Mercer.
“The solution is no secret: we need to see new policies pointed on more supply to translate into shovels in the ground for many years to come.”
