Toronto real estate is seeing the market cool, and the condo segment is no exception. Toronto Real Estate Board (TREB) numbers show prices were down in August, compared to the month before. However, these prices still retain pretty steep increases from last year.
Toronto Condo Prices Are Up To 52% Higher
The price of condos dropped, but still remain very high compared to last year. The benchmark price, a.k.a. the price of a typical condo, dropped to $460,600 – a 0.5% decline from the month before. Though prices still remain a massive 26.09% higher than the same time last year. The 416 condo benchmark declined to $478,000, a 0.68% decline from the month before. The benchmark is still 27.35% higher than the same month last year.
Only 25% of neighbourhoods saw an increase from the month before. The largest gain was observed in the TREB E10 district, around Rouge Park. There the benchmark condo rose to $377,400, up $12,400 from the month before. The condo benchmark in E10 is a mind boggling 52.94% higher than the same month last year. On the flip side, the biggest loser from the month before is C03, the Oakwood-Vaughan neighbourhood. The condo benchmark in C03 fell to $838,100, down $36,000 from the month before. The benchmark is up 26.46% from the same month last year.
Condo Sales Are Down 28%
The volume of sales across TREB are down significantly. TREB recorded 1,996 sales, down 28% from the same month last year. Breaking that down, the 416 saw 1,476 of those sales, down 24.5% from the same month last year. The 905 saw 520 of those condo sales, down 36.4% from the same month last year. Tapering sales are expected as prices rise, last year being a huge exception. A foreign buyer tax, mortgage stress testing, and higher interest rates also probably didn’t help with sales growth.
New Condo Listings Are Down Over 15%
The number of condo listings also saw a large decline across the GTA. TREB recorded 2,914 new listings, down 15.73% from the same month last year. The 416 saw 1,992 of those new listings, down 19.61% compared to last year. The 905 saw the other 922 new listings, down 5.91%. The decline in new listings is almost half the decline in sales. So unless a bunch of listings get cancelled – expect more buyer options. That’s code for ‘I expect softer sellers,’ by the way.
Condo prices are down, but they’re still posting huge gains compared to the same time last year. Some media outlets have reported that the condo market is slumping, but it’s kind of hard to say a 26% increase is a slump. Price growth is decelerating however, so it’s worth exercising a little extra caution.
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