The Number Of GTA Condos For Sale Has Dropped & It's Driving Prices Through The Roof

It seems sellers are scared to list, and buyers are worried about missing out on the opportunity to buy, creating a pretty messy situation.

GTA condo listings have dropped 63% in the last year, and this "lack of listings is likely what’s driving an overall pricing surge across the GTA," according to Strata.

In January, only 1,415 condos were listed in the GTA compared to 3,811 units that were available in January 2021. Condo prices have increased by 34% in 15 months.

Winter is not the hottest real estate season normally and GTA listings have been on the decline since October 2020, when "listings peaked" with "8,428 units on the market."

The problem with fewer listings is not just that buyers have fewer options. The demand for condos is still present, and it's driving prices up.

In what Strata describes as the "perfect cocktail" of buying and selling sentiments, some sellers are waiting to list their properties in spring when there's a busier market, while others have concerns about COVID-19.

"Omicron is still dominating the headlines, so some of my seller clients are closely monitoring how ongoing restrictions may impact the market,” says Strata realtor Milan Mitrovic.

Mitrovic says others just don't want people walking around their houses while "infection rates are still high."

On the other hand, lots of buyers are looking to get into the market while they can and are experiencing FOMO (fear of missing out).

Some buyers are afraid they'll be "priced out" if interest rates increase this year, so they're trying to lock down a purchase beforehand.

According to Strata, however, "interest hikes tend to be very minimal."

In a nutshell, this means the GTA is facing a lower supply with a good group of people still looking to buy, and if inventory remains low, the problem will only get worse.

Not all hope is lost, though, as Mitrovic thinks, "we’ll see a lot of new inventory in March," and since buyers are in the market now, the competition may not be as fierce.