3.8K 
The 2020 third-quarter report from the Toronto Regional Real Estate Board (TRREB) shows there is strength in the Greater Toronto Area condominium market, with the volume of sales and new listings both skyrocketing over pre-pandemic numbers. Q3 2020 saw a 10.5% spike in sales recorded year-over-year, at 7,072 condominium apartments sold, while an onslaught of new listings, at a total of 17,613, represents an 84.6% leap over the same period in 2019.
A statement issued by TRREB President Lisa Patel reads “The condominium apartment segment experienced the second-best third quarter on record in terms of sales and the best third quarter on record in terms of the average selling price. However, while the pace of year-over-year condo sales and price growth remained strong, it was lower than that reported for low-rise home types. The condo market became much better supplied as many investors moved to sell their units, due in part to softer rental market conditions and a short-term rental market that was impacted by stricter regulations and the COVID-19-related drop in tourism.”
All of this Q3 2020 activity fuelled an increase in the average condominium apartment selling price, rising 8.3% year-over-year to $633,484. Within the 416, average selling prices have increased to $680,963.
“While condo buyers certainly benefitted from more choice in the third quarter compared to the past few years, there was still enough competition between buyers to support average selling prices substantially above last year’s levels. It is important to note that one quarter does not make a trend, either on the demand or supply sides of the market. How the relationship unfolds between condo sales and listings over the next three to six months will dictate the longer-term direction for selling prices,” reads a statement from Jason Mercer, TRREB’s Chief Market Analyst.
Meanwhile, the condominium apartment rental market saw similar increases in supply during the third quarter. A total of 14,036 condo apartment rental transactions marked a 30.2% year-over-year increase, while the number of listings during Q3 2020 increased dramatically, rising 113.9% year-over-year.
The pandemic's negative effects on the rental market have been well documented in recent months. Q3 2020 saw a notable decrease in average condominium apartment rents, with the average one-bedroom rent falling 11.1% to $2,012 from $2,262 in Q3 2019, and the average two-bedroom condominium apartment rent down by 9.2%, dropping to $2,672 from $2,941.
“Demand for condo rentals was very strong in the third quarter, with a record number of quarterly transactions reported. However, during the same period, the number of units listed more than doubled compared to last year. Many investor-owners took their units out of the short-term rental market, due to stricter regulations and the COVID-19-related tourism downturn, and made them available in the traditional rental marketplace. The result was more choice and more negotiating power for renters,” reads a statement from Ms. Patel.
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