The Greater Toronto condo market saw a small spike in buying activity last month. Toronto Real Estate Board (TREB) data shows condo apartment sales increased in December. The rise in sales was accompanied by very few new listings, helping to send prices to a new all-time high.
Greater Toronto Condo Prices Rise Over 9%
Toronto is seeing condo apartment prices rise very quickly these days. TREB reported the typical, or benchmark, condo price hit $558,000 in December, up 9.48% from the same month last year. In the City of Toronto, the benchmark reached $590,100, up 9.07% from last year. Condo apartments are at a new all-time high according to the benchmark price.
Toronto Benchmark Condo Price
The price of a “typical” condo apartment in Toronto.
Source: CREA, Better Dwelling.
The rate of growth did see a bump in acceleration, but it was the first in a while. TREB’s 9.48% growth rate only dropped one basis point from the previous month. However, the City of Toronto dropped nearly half a percent from the month before. Now both rates are still very high, and it was the first deceleration in a while. It’s too early to tell if this is a blip or a little resistance to price growth.
Toronto Benchmark Condo Price Change
The annual percent change of price, for a “typical” condo apartment in Toronto.
Source: CREA, Better Dwelling.
The median sale price reflected much larger growth, nearly catching up to the benchmark. TREB’s median sale price came in at $550,000 in December, up 13.40% from the same month last year. The City of Toronto hit $585,000, up 11.43% from last year. This is very close to the benchmark, something that hasn’t been seen in a while.
Toronto Median Condo Sale Price
The median sale price of a condo apartment in Toronto.
Source: CREA, Better Dwelling.
The average sale price for Greater Toronto’s condo apartments made a similar increase to the other metrics. TREB reported the average sale price reached $612,464 in December, up 10.454% from last year. In the City of Toronto, it hit $656,233, up 10.41% from last year. Considering these numbers were both substantially higher than the median, there’s a good chance luxury was a big hit last month.
Toronto Average Condo Sale Price
The average sale price of condo apartments in Toronto, and the suburbs.
Source: CREA, Better Dwelling.
Toronto Real Estate Sales Rise Over 5%, Still Below Typical
Greater Toronto condo sales increased, but fail to reach typical levels for the month. TREB reported 1,255 sales in December, up 5.91% from a year before. The City of Toronto represents 884 of those sales, up 4.25% from last year. Both regions experienced a substantial increase in volume but failed to reach norms. Last month was still over 14% lower than the median sales volume in the prior 5-years for the month. The drop in sales is largely explained by inventory.
Toronto Condo December Sales
The number of condo apartments sold in the month of December, by year.
Source: TREB, Better Dwelling.
Toronto Condo Inventory Was The Lowest In A Decade
December isn’t a big month for listing your home for sale, and last month was no exception. New listings for condo apartments came in at 1,092 across TREB, down 5.29% from a year before. The City of Toronto represented 779 of those listings, down 2.99% from a year before. There were fewer new condo listings than sales last month, compounding pressure on buyers. However, this is a fairly normal thing for the month.
Toronto Condo Sales Vs. New Listings
The number of condo sales, vs newly listed condos across Greater Toronto.
Source: TREB, Better Dwelling.
More sales and fewer new listings wore down total inventory, to the lowest level in years. TREB reported 1,660 active listings in December, down 29.39% from last year. The City of Toronto represented 1,148 of those listings, down 23.57% from last year. This is the lowest level of condo apartments available for sale in December, for at least a decade.
Toronto Active Condo Listings
The number of condo listings available for sale in Toronto.
Source: TREB, Better Dwelling.
Generally speaking, the Greater Toronto condo market saw more sales, lower inventory, and higher prices. The drop in sales is likely due to the scarcity of inventory. Surprisingly, even with the tight inventory, price growth slowed for the first time in months.
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How does anyone believe TREB, when Statistics Canada, an unbiased source, says Toronto condo resales are only up 3.85%, and new condo sales are down?
A different author even mentioned this on your site this week.
https://betterdwelling.com/canadian-condo-prices-are-rising-and-falling-faster-than-houses/
because this is an article covering the TREB report? TBH, it doesn’t matter what Statistics Canada says.
This is what agents would use, and they’re the numbers they’ll explain to their buyers and sellers. If the buyers and sellers using agents are being told it’s x% higher, they can say “Statistics Canada says this,” but no one is going to care. They just won’t get the house.
Corona virus is bullish. Buy the dip.
We need to introduce a coronavirus tax, then the coronavirus will balance itself
New York City is seeing prices drop to a six year low this month.
https://www.crainsnewyork.com/real-estate/prices-luxury-manhattan-homes-fall-lowest-level-six-years
Perhaps house owners realizing they can’t afford their houses and moving to the only “affordable” alternative in condos?
FIrst-time buyers are opting for condo market owing to their lower price point and downsizers are selling low-rise and buying into market as well
Detached market has been weak last three years though it is perked up late;ly and owing to low supply i think will outperform high-rise in the next 18-24 months
More vertical buildings / condo. more elevators. I have invested in united technologies. They are one of the biggest companies in making, installing and repairing elevators. As we get more density and go vertical elevator companies have skyrocketed. Much more room to grow. Every government lever will be used to make sure house prices do not decline significantly. I am the professor of real estate and everything I have said on this site has come true over the last 3 years.
Self declared confidence, I like it.
Barf.
These are simply stats produced by the organized real estate machinery to brainwash the gullible public to believe it is factual. Nobody actually does any analysis to understand if they are factual. Media and blogs just regurgitate the information and feed it to public.
The figures are based on average selling prices and not average purchase price paid. That is a big difference and they use benmark prices which are not even comparable to be apples for apples.
This has been going on for 40years, people need to think, in this day and age of technology why does Canada still have these organized monopolies which control and manipulate everything.
Foreign capital buys all the pre-sale condos and they assign the contracts to unsuspecting local hard working Canadians into paying exorbitant inflated prices for these condos. This practice is not allowed in any other Western countries.
Bottom line is if you have nothing to sell, the best thing to do is be patient for the bubble to deflate when the interest rates beging to climb up.