GTA Condo Market Report Q4 2023

Analyzing Fourth Quarter 2023 Condominium Apartment Sales in the GTA

In the fourth quarter of 2023, the condominium apartment market in the GTA continued to face challenges, primarily stemming from affordability concerns due to high borrowing costs. Despite this, there were notable trends and insights observed within the market dynamics.

Affordability Concerns Impacting Demand

Historically low condominium apartment sales were recorded in the GTA during the fourth quarter of 2023, as the demand for ownership housing faced obstacles due to affordability concerns triggered by elevated borrowing costs. This trend mirrored the broader challenges experienced across various segments of the homeownership market.

View the full 2023 Q4 TRREB Condo Market Report.

Abundance of Choice for Buyers

Buyers active in the condominium apartment market during this period were met with a significant amount of choice. This surplus of available properties translated into slightly lower average selling prices compared to the same period in the previous year, offering buyers more negotiation power.

Market Activity Pull-back

The slowdown in market activity was attributed to the Bank of Canada’s decision to raise interest rates in early 2022. This adjustment in monetary policy had a dampening effect on demand for homeownership, including condominium apartments. However, there is optimism for the market’s future prospects.

Prospects for Improvement in 2024

Looking ahead, there is anticipation for positive changes in the condominium apartment market in 2024. Forecasts indicate a potential downward trend in borrowing costs, which could alleviate affordability concerns for many first-time buyers. This, in turn, is expected to stimulate demand and lead to improvements in market conditions.

Statistical Insights

Total condominium apartment sales in the GTA amounted to 3,446 in Q4 2023, marking a 3.4% decrease compared to the previous year.

Conversely, new condominium apartment listings saw an increase of over 29% during the same period, contributing to a more balanced market environment.

The average selling price for condominium apartments in the GTA was $702,142 in Q4 2023, representing a modest decline of 1.1% compared to the previous year.

In terms of Toronto condos, which accounted for a significant portion of total sales, the average selling price stood at $720,456, down by 2.4% from Q3 2022.

Future Outlook

According to TRREB officials, the expected decrease in borrowing costs in the coming year presents an opportunity for improvement in the affordability landscape, particularly for first-time buyers.

Additionally, they highlight the potential for increased demand in the condominium apartment market, driven by factors such as high average rents and the appeal of condominiums as an entry point into homeownership for first time homebuyers.

In conclusion, while the fourth quarter of 2023 presented challenges for the condominium apartment market in the GTA, there is optimism for positive changes on the horizon, with expectations for improved market conditions and increased demand in 2024.

Condo Apartment Prices 2023 Q4
CityAvg Condo Price
Toronto Central$769,855
Year-over-Year Summary
202320222021%age Change to 2022
New Listings9,7177,5148,76129.3%
Active Listings4,5213,4301,48831.8%
Avg. Price$702,142$710,124$710,246-1.1%
Avg. LDOM30271811.1%

Condominium Apartment Market Summary 2023 Q4

2023 Q42022 Q4
SalesAverage PriceSalesAverage Price
TRREB Total3,446$702,1423,569$710,124
Other Areas16$571,56319$566,468

Rental Market Summary 2023 Q4 & YTD (in comparison with previous year)

2023 Q4All ApartmentsBachelor1 BR2 BR3 BR
Listed21,673 (46.0%) 644 (29.3%)   11,713 (55.7%) 8,396 (37.1%) 920 (32.0%)
Leased9,745 (12.6%) 312 (7.4%) 5,766 (18.9%) 3,354 (5.4%) 313 (8.3%)
Avg Rent$2,828 (2.3%) $2,131 (2.7%) $2,552 (2.2%) $3,267 (3.7%) $3,906 (1.0%)
2023 YTDAll ApartmentsBachelor1 BR2 BR3 BR
Listed70,039 (19.7%) 2,578 (10.6%) 38,371 (20.6%) 26,432 (19.2%) 2,658 (21.9%)
Leased48,484 (7.1%) 1,915 (2.3%) 27,778 (8.1%) 17,234 (5.8%) 1,557 (11.2%)
Avg Rent$2,844 (8.3%) $2,139 (10.8%) $2,552 (8.8%) $3,271 (7.3%) $4,202 (9.0%)

Are you a GTA Landlord or Tenant?

You may find our recent post on Residential Tenant Move-in and Move-out process very useful! Also read our post on GTA Rental Market 2023 Performance and 2024 Outlook.

Mississauga & Toronto Condo Market Performance in January 2024

And how did the first month of 2024 perform?

Resale Market
Average Condo Apartment Prices in January 2024
1 BR1 +1 BR2 BR2 +1 BR3 BR3 +1 BR
Mississauga City Centre$533,777$551,381$575,000$616,833N/AN/A
Downtown Toronto$654,641$677,969$857,881$907,295$1,092,667$1,276,000
Rental Market
Average Condo Apartment Rents in January 2024
1 BR1 +1 BR2 BR2 +1 BR3 BR3 +1 BR
Mississauga City CentreN/A$2,513N/A$3,004N/AN/A
Downtown Toronto$2,625$2,569$3,050$3,597N/A$3,670

Mississauga & Toronto Condo Market Performance in for the year 2023

And how did the 2023 perform in whole?

Resale Market
Average Condo Apartment Prices in 2023
1 BR1 +1 BR2 BR2 +1 BR3 BR3 +1 BR
Mississauga City Centre$625,000$580,795$607,490$674,855$832,500
Downtown Toronto$645,250$595,180$962,600$876,130$1,146,500
Rental Market
Average Condo Apartment Rents in 2023
1 BR1 +1 BR2 BR2 +1 BR3 BR3 +1 BR
Mississauga City Centre$2,475$2,422$2,724$2,931$3,758$3,838
Downtown Toronto$2,092$2,364$2,706$3,270$4,005$4,840

Downtown Toronto vs. Downtown Mississauga Condo Apartments

If we are to compare apples to apples, Downtown Toronto condos sell anywhere from $90K to $200K+ more than Mississauga City Centre condos (depending on type) .

1 BR + Den + 1 WR 600 – 699 sq. ft. condo with 1 Parking spot 

Mississauga average price: $552,400 (in Jan 2024), $581,781 (in 2023).

Toronto average price: $646,083 (in Jan 2024), $674,410 (in 2023).

2 BR + Den + 2 WR 800 – 899 sq. ft. condo with 1 Parking spot 

Mississauga average price: $610,000 (in Jan 2024), $658,307 (in 2023).

Toronto average price: $891,000 (in Jan 2024), $907,313 (in 2023).

Why Condos are Still a Good Investment Today

Condos Are Set to Bounce Back Strong

Although condo sales are slow right now, it’s temporary. There are good reasons to believe that people will come back to condos soon. More people are moving in, offices are reopening, and city life is picking up again. This means buyers will return to condos for the convenience and lifestyle they offer.

Currently, with the back to office trend, we have seen that some people are moving from Mississauga condos to Toronto condos.

It is expected that the condo market will bounce back in the next few years, looking at how well it was doing before 2020. For investors, this is a chance to buy condos at lower prices and wait for the market to improve before selling. In short, it’s time to pay attention. Condos are bound to make a comeback, and it’s smart to get ready for it.

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