In both the rental and selling condo apartment market, we’ve seen a flood of listings since the pandemic started. What’s happening?
Why are there so many downtown Toronto condo apartment listings?
In both the rental and selling market, we’ve seen a flood of listings since the pandemic hit. What’s happening?
- Leading up to the pandemic – City of Toronto – new restrictions – only allowing from principal residence – not full units rented year round short term basis. So, owners were already preparing for income losses.
- After the pandemic hit – early April – banned for two months. Owners – long term rentals, or for sale.
- Ban lifted in June, but by then the ban had already had a longer term effect. Owners have to think about future bans as well as the pandemic progresses.
- Travel restrictions reduced the demand.
- People practicing physical distancing – choosing not to travel.
- Travel restrictions have significantly reduced immigration. Since immigrants make up a significant portion of the demand for rental homes, there was suddenly less demand.
Changes in Housing Needs and Wants
- People in condo apartments faced a lifestyle change after the pandemic took hold of our community.
- Amenities were shut down and could no longer be used.
- The number of people allowed on an elevator at once was limited, which made waiting times for elevators longer.
- People were afraid of catching the virus in high traffic areas such as hallways and doorways.
- With the ability to work from home more often, some people were able to move further out of the downtown Toronto core.
August 2020 new condo listings were at 5,599, which was more than double that of August 2019 which had 2,741.
Selling prices and rents for downtown condo apartments have come down in price since the flood of listings, even while low rise homes are selling in hot markets all over the GTA.
Clearly the pandemic is a huge factor in this surplus of listings and so it is likely temporary, but difficult to predict.
If you want to discuss how to navigate this tricky market, call or text me anytime at 416-725-3544.
Bye for now.