Toronto’s thriving real estate market shows no sign of slowing down, and the city is coming back with a bang as bidding wars for condos and rapid fire sales have escalated over the past month.

According to the Toronto Regional Real Estate Board (TRREB), condo prices reached an all-time high in the fourth quarter of 2021, with 7,815 units in the GTA sold between Oct. 1 and Dec. 21 – an increase of almost 21 per cent from last year. The average condo price increased by 16.4 per cent to a whopping $710,087.

2022 marks a migration back into the city

“The resurgence in the condo market was a key real estate story for 2021. First-time buyers, who arguable remained on the sidelines longer than existing home buyers during the earlier stages of the pandemic, re-entered the market with vigour last year,” said TREBB President, Kevin Crigger.

Just last week, TREBB released their market outlook report for 2022 which forecasts that the average selling price in Toronto will hit a new record, with buyers focused mainly on condos. And while first-time buyers are likely to drop in the ‘905’, TREBB is reporting that in the ‘416,’ first-time buyer activity may increase compared to last year, thanks to a resurgence in the condo demand that was experienced in 2021.

The resurgence points to a migration back to the city, after two years of the pandemic found Torontonians moving out of the city and buying in the 905 and beyond.

From Jan. 1 to Jan. 31, 1,409 condos were sold, down 17 per cent from last year, but prices continued to rise. The average price for a condo in Toronto is now $760,643, an increase of almost 22 per cent from this time last year.

“We are historically low in terms of listings and the demand keeps increasing, which is why the market is on fire,” said Toronto broker, Julian Kashani. “In the past, buyers are aware there is a lack of supply in the winter months, and they patiently wait until the spring when supply increases. But now, people are in a panic thinking that prices are going to continue to increase and they want to buy something ASAP. It’s your typical situation of lack of supply and an intense demand – the price goes up.”

Realtors seeing over 20 offers per unit

Rapidly decreasing inventory has also led to bidding wars, with some units attracting as many as 40 offers. Just a few weeks ago, a two-bedroom 690-square-foot unit located at 150 Sudbury St. in Toronto’s Little Portugal neighbourhood sold at $162,000 over asking price. The unit received 19 offers and was on the market for five days.

Another unit, a two-bedroom, three-bathroom unit at 88 Cumberland St. in Yorkville, sold in just seven days for over $65,000 over asking after multiple offers. A two-bedroom condo at 5 Soudan Ave. was listed for $829,00 and sold for $930,000 one week later.

“In this environment when there’s 20 plus offers, buyers get emotional and offer more than they wanted to,” said Kashani.

While competition to buy a condo in Toronto is fierce, Kashani asserts that there is no indication that rising prices and bidding wars won’t continue.

“People feel a high level of confidence about Toronto, which is why so many people are investing. It’s a successful city where people want to live, jobs are being created, and corporations from all over the world are investing here,” he said. “I personally don’t see the prices coming down anytime soon.”