Condo Market Report January 2023 by Team Kalia
Condo Market Report January 2023 – 2022 Q4 Round Up
Selling prices for condominium apartments in the GTA resisted the overall downward trend in the housing market during the fourth quarter of 2022.
- The average selling price in Q4 2022 stayed in line with the average in Q4 2021.
- Total condo apartment sales of 3,582 in Q4 2022, were down 54.1% compared to Q4 2021.
- New listings were also down on a year-over-year basis by 14.3%.
- The average Q4 2022 selling price was $710,520, which was relatively flat to Q4 2021 average of $710,246.
- Looking at individual GTA regions, a similar trend was noticed, 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. – TRREB Chief Market Analyst.
Read the full 2022 Q4 TRREB Condo Market Report.
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Condo Market Report January 2023 – Rental Summary Q4 2022
According to the 2021 census, roughly one-third of Canadians rent.
That number is higher in urban centres like Vancouver, Toronto, and Montreal, where about half of all residents are tenants. And the numbers are rising fast: over the past decade, growth in renters was twice that of owners.
In a 2022 survey by Canada Life, almost half of the respondents who rent said they would continue to do so indefinitely. Those surveyed cited a lack of cash, fear, and uncertainty as their main reasons.
A similar survey done in 2021 revealed that of those aged eighteen to twenty-eight, 50% had given up the dream of ever owning a single-family home in urban centres.
- Total Q4 2022 condo rental transactions of 8,687 were down 19.9% year-over-year.
- There were 14,880 units listed for rent, which was down by 11.8% compared to Q4 2021.
- The average one-bedroom condo apartment rent was $2,503 in Q4 2022, representing a 19% increase compared to the same period in 2021.
- Over the same period, the average two-bedroom condo apartment rent increased 14.1% to $3,178.
Condo Market Report January 2023 – Investor Activity
Investors make up to 20 to 30% of homeowners in some provinces: Statistics Canada
- New Statistics Canada data shows investors made up almost one third of homeowners in some provinces in 2020.
- The data agency says investors made up 31.5% of Nova Scotia’s homeowners that year and 29%t of New Brunswick’s property holders.
- Investors in British Columbia came in at 23.3% followed by 20.4% in Manitoba and 20.2% in Ontario.
When grouped together, the calculations show under one in five homes in British Columbia, Manitoba, Ontario, New Brunswick and Nova Scotia was considered an investment property in 2020.
Houses used as an investment were mainly owned by individuals living in the same province as the property.
Condo apartments were used as an investment more often than houses, with Ontario alone seeing the highest rate of condo apartments used as investments at 41.9%.
A whopping 36% of the condos in Toronto are owned by investors, according to a new report published by Statistics Canada.
In some smaller markets, investors account for well over 80%. The data is pulled from early 2020, before prices shot up by more than 50% across the country as interest rates reached historic lows.
Why Condos are Still a Good Investment Today
Although the condo market is somewhat flat during this time, this doesn’t mean it won’t rebound.
It is unlikely that people will stay away from condos for the long term. Immigration is continuing to grow, people are returning to offices and amenities are reopening, buyers will naturally flock to the city centres once again to enjoy the lifestyle and conveniences that condo-living has to offer.
The condo market is expected to rebound in the next few years, based on the strong sales activity and prices just prior to 2020.
Investors can take advantage of lower condo prices now to buy and hold a unit to sell once the market gains strength.