Real Estate

Toronto condo and house relative values - Inflection point?

  • Last Updated:
  • Sep 2nd, 2020 12:36 pm
Deal Expert
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Apr 21, 2004
54079 posts
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All this means is renters expect higher and higher rentals and only way out of the rat race is purchasing something they can afford -- condos highrises.
[OP]
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Feb 22, 2011
7301 posts
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Toronto
mazerbeaner wrote: I think the changes made by Liberals reduced access to credit so a lot of people were pushed down the property ladder to condos, this caused condos to rapidly increase in price. It seems that they are now leveling off and houses should start to get pushed up as people upgrade.

You can see the farthest divergence in average sale price was in February 2017 where the average condo sale price was only 33% that of a house. Then we see the closest point in December 2018 where the average condo hit 52% the price of a house. It seems to be trending back down now so I would expect that soon we will see house prices go up quite a bit more than condos for the first time in 2 years.
Went down to 44% in July, probably going to be lower in August. Looks like I called the outcome, albeit for a completely wrong reason.

While COVID definitely was the catalyst I think we were already primed for a shift in relative prices. In a strictly comparative sense of condos to houses, houses were undervalued relative to condos in GTA.

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