After a long cold pandemic winter, condos are back.

The condo market in Toronto took the hardest hit of any city in Canada when residents fled in the early days of the pandemic. Listings soared, prices fell and a flood of vacant units sent rents downward. Now they are not only rebounding, they are also expected to outstrip the price gains of much-coveted detached homes in Canada’s biggest city.

Royal LePage’s 2022 forecast, out this morning, predicts that the median price of a condo in Toronto will rise 12% to $763,800 by the last quarter of next year, beating the 10% gain that will take a detached home to $1,564,200.

The Greater Toronto Area is the only region in the country where condo gains are seen outpacing detached homes, but the gap is narrowing in other centres.

“Demand for condos has picked up significantly in recent months, especially in major cities like Toronto and Montreal,” said Karen Yolevski, Royal LePage’s chief operating officer. “This trend will continue in 2022, as entry-level buyers are priced out of more expensive property segments and the revival of the downtown core continues.”

Royal LePage is the second major realtor to forecast double-digit price gains for Canada’s housing market next year. Realtors see strong growth ahead, but down from the blistering 21.4% jump estimated for this year.

Earlier this month RE/MAX predicted that home prices will rise by 9.2% in 2022, with some of the strongest price growth in smaller centres in Atlantic Canada and rural Ontario.

Continue to read on: FinancialPost