“December. A desperate celebration of an end.”
– Chandrama Deshmukh, A Teaspoon of Stars
Happy new year!! How’s everyone doing? Any new year resolutions? We thought this quote was a good summary of this past year. A lot of us would like to close the chapter on 2021 and move on to 2022 with a fresh start.
As of Thursday January 6th, 2022, 83.197% of the total Canadian population has received at least one dose of the COVID vaccine and 77.046% of the total Canadian population are fully vaccinated. That’s more than 69,952,213 doses administered & 74,272,404 doses of approved COVID-19 vaccines delivered across Canada.
As of January 5th, 2022, and in response to the rising COVID-19 cases, Ontario moved back into a modified Step 2 of the Roadmap to Reopen. This means that indoor social gatherings are restricted to 5 people or fewer, outdoor gatherings to 10 people or fewer, indoor and outdoor organized public events, weddings, funerals and religious services are restricted, work from home must be prioritized, retail must operate at 50% capacity, camps are closed & indoor service is closed for restaurants and bars. The following measures will be in place for at least 21 days (until January 27) subject to trends in public health and our health system.
And that’s what you missed on… Reopening Ontario… or rather, Lockdown Ontario!
Now, on to real estate! This month, we saw an expected decrease in total condo rentals month over month and year over year. Let’s delve into the numbers for our Liberty Village condo market in December and let them do the talking.
Attention Landlords and Renters!!
If you are think of renting out your condo this Winter or Spring and you’d like to learn more about the services we offer, have a look at our hugely popular blogpost- Landlord Services in Liberty Village.
If you are thinking of renting a condo this Winter and you don’t know where to start, take a look at our massively popular blogpost- Everything You Wanted to Know About Renting Your First Condo in Liberty Village.
How Many Condos Rented in Liberty Village in December?
December 2021 saw a total of 46 condo rentals in Liberty Village. In comparison, December 2020 had 119 rentals. Holy cow- this is a 61.34% decrease in condo rentals year-over-year. We can put this decrease into context when we look at the average monthly rental prices in December 2021 versus December 2020. Spoiler: prices were much lower, given it was one of the peak months of what we coined “pandemic pricing”. We will go into detail about it later on in this post – so keep reading for that!
Now, let’s dive into month over month. When comparing December 2021 to November 2021, there was a major 41.03% decrease in condo rentals month over month. If you read our sale stats blog post, you know that condo sales also decreased month over month. Both of these things are expected given the transition to the end of the year. We know that, historically, the beginning of Winter market proves to be a sleepy time for real estate. Partially, because the weather is colder (and nobody likes to move in the cold/snow) and also because the real estate market, naturally, has to have higher and lower peak seasons- with winter being a lower peak season. So, when we see something as common as a decrease in condo rental activity from a month like November 2021 to a month like December 2021, we are not worried that this is an indicator for 2022.
Rental volume tells us part of the story. Let’s look at prices. Did values increase, remain the same or decrease from December 2020 to December 2021? Let’s take a look at the average rental price for all types of condo rentals year over year.
The average rental price in December 2021 was $2,320 on the 46 rentals. The average rental price for the 119 rentals in December 2020 was $2,034. A 12.33% year over year increase in rental price – great news for Landlords! Now, this is the part where we put the year-over-year number of condo rentals into context. As demonstrated above, prices were 12.33% lower, this time, last year. Naturally, Renters were eager to secure a fantastic deal – something that RARELY happens in a city like Toronto. This explains why the number of rentals were substantially higher in December 2020 – people will never pass up on a deal! Especially, considering, many thought that 2021 would be a new start for increasing rental prices. In this way, many rushed to grab a rental deal before it was seemingly over with.
Now, if we look at the average rental price through a month to month lens, there is a 14.11% decrease in average rental price month over month. Interesting! That’s a notable price decrease month-to-month. Tenants are happy but Landlords may be a bit worried. Tenants, Landlords, we’ll let you know what this means for you further down in the blogpost.
Now, let’s compare the average rental price in December 2021 to December 2019 (COVID-19 was newly being learned about, but it’s impact was seemingly minimal) – there is a 5.73% decrease in rental prices. Meaning, prices were higher during December 2019 in comparison to December 2020. Some other good news for Tenants! Last month, we saw that prices were higher during the pandemic than pre-pandemic, which was a huge and pleasant surprise for Landlords. Although, this month, where things are VERY sleepy, we’re seeing that prices are following the same pattern of the other 2021 months – pre-pandemic prices were higher and pandemic prices were lower. Now, this isn’t surprising to us, so we want to be clear that, while, it is not ideal for Landlords, we do not believe it to be predictive of the remainder of 2022 (like number of rentals month-to-month).
So, What Does This Mean for Renters?
When analyzing the December 2021 market statistics, our advice for Renters is to secure a deal quickly if you can. January, historically, proves to be a month where number of condo rentals and prices pick up. So, while we saw a lull in both condo rentals and prices in December, we don’t expect this to continue. So, get your foot in the door now, and potentially secure yourself an UNHEARD OF deal. We called last month’s rental market bonkers, on steroids- multiple offers, units being scooped up within a day or days of being listed and units going at or over their asking prices. We’re calling this month super sleepy! If you want to get your condo search started now, email our rental specialist Kylie or fill out our Contact Form.
So, What Does This Mean for Landlords?
If you’re a Landlord, you may be discouraged by the December numbers. There is no need to be worried, though, this is NORMAL for December. The good news is that there is currently little inventory when comparing last year’s quantity of rental listings. Naturally, a lack in supply and large demand will improve the average value of condos, and we predict it will in the new year. So, our best advice to Landlords is to list as usual. No rush, no delay, just list when you’re ready to. Why? Because there’s presently no pressing need to rush the process.
Set yourself up for success by touching base with a rental expert as soon as possible. Our rental specialist, Kylie, will keep you privy to all comparable leased units in the meantime, prepare a thorough marketing strategy and ensure you are on the best track to get major dollar for your unit. To learn more about the Landlord services we offer, have a look at our hugely popular blogpost- Landlord Services in Liberty Village.
Any predictions for the remainder of the Winter market or early Spring market? Let us know in the comments below.
If you have any specific questions about the market or are curious as to how this relates to you, get in touch. Email our rental specialist Kylie or fill out our Contact Form.