The Toronto condo market is seeing prices climb even higher these days. Toronto Real Estate Board (TREB) data shows the price of a typical condo apartment reached an all-time high in August. The rise in prices is being attributed to falling inventory, and climbing sales.
Toronto Condo Prices Rise 8% From Last Year
The price of a typical condo apartment edged to a new high last month. TREB reported the benchmark price of a condo hit $545,900 in August, up 7.97% from last year. The City of Toronto benchmark reached $576,300, up 8.01% from last year. Both numbers are at a new all-time high for the segment.
Toronto Benchmark Condo Price
The price of a “typical” condo apartment in Toronto.
Source: CREA, Better Dwelling.
The rate of growth for the benchmark made a downtick, but is still very high. The 12-month increase of 7.97% is lower than the month before. However, this is only a month of growth deceleration, so it’s not a trend. The rate of growth is also still higher than anything seen in the years leading up to 2016 as well.
Toronto Benchmark Condo Price Change
The annual percent change of price, for a “typical” condo apartment in Toronto.
Source: CREA, Better Dwelling.
The median sales price of a condo apartment is making a similar increase. TREB reported a median sale price of $520,000 in August, up 8.58% from last year. The City of Toronto reported a median sale price of $565,000, up 8.87% from last year. This means more than half of condos are selling at least 4.74% below the price of a “typical” condo apartment. The median sale price for TREB is also unchanged from the month before.
Toronto Median Condo Sale Price
The median sale price of a condo apartment in Toronto.
Source: CREA, Better Dwelling.
The average sale price is higher, but growth is a little slower compared to the other two metrics. TREB numbers show the average sale price fell to $574,632 in August, up 6.19% from last year. The City of Toronto average sale price reached $619,307, up 5.80% from last year.
Toronto Average Condo Sale Price
The average sale price of condo apartments in Toronto, and the suburbs.
Source: CREA, Better Dwelling.
Toronto Condo Sales Rise, But Significantly Below Peak
Toronto condo apartment sales are up, but significantly below the peak for sales a few years ago. TREB reported 2,067 condo sales in August, up 3.35% from the same month last year. The City of Toronto represents 1,410 of those sales, up 1.58% from the same month last year. Sales numbers for the month have grown for the past 3 years, but are still under where they were a few a years ago.
Toronto Condo August Sales
The number of condo apartments sold in the month of August, by year.
Source: TREB, Better Dwelling.
Toronto Condo Inventory Makes A Big Decline
New listings of condo apartments for sales are falling, especially in the suburbs. TREB saw 2,741 new listings for condos in August, down 7.42% from last year. The City of Toronto represented 1,913 of those new listings, down 4.96% from last year. Both markets are getting tighter for sales, but the 905 is seeing new inventory drop faster.
Toronto Condo Sales Vs. New Listings
The number of condo sales, vs newly listed condos across Greater Toronto.
Source: TREB, Better Dwelling.
Fewer new listings sent total condo apartment inventory plummeting for the month. TREB reported 3,095 active listings in August, down 13.83% compared to a year before. The City of Toronto represents 2,117 of those listings, down 8.23% from last year. Both Toronto and the suburbs are seeing inventory drop quickly, but it’s almost twice as fast in the 905.
Toronto Active Condo Listings
The number of condo listings available for sale in Toronto.
Source: TREB, Better Dwelling.
Generally speaking, Toronto’s condo market saw lower inventory and higher sales. Falling inventory may have to do with sellers waiting for the first-time homebuyer incentive. The program launched this month, and is expected to create inflationary pressure. Combine this with higher sales, and prices are predictably growing at a very quick pace.
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The CMHC is the only organization that would attempt to make housing “affordable” by helicoptering money and driving up the cost of housing. Not enough palms in Canada for the amount of facepalming needed here.
Huge the f@!k does the median sale price stay at the same level for multiple months? I understand there’s some rounding to the nearest hundred or thousand, but how much “smoothing” is needed to get the same number twice? It’s a near statistical impossibility for a market, but this is happened 5 times since 2015?
Not all that surprising. An investment newsletter I receive said scoop anything affordable, because the government is going to drive prices higher for the near term with the FTHB plan.
Floor is going to rise for sure, which is why the 905 is doing so well. Not sure if a rising floor is going to show up much on the charts though.
Makes sense. A little acceleration into it will turn into a lot of acceleration for the cheapest neighborhoods can turn into a lot without moving the need much. More so the impact of housing in working class neighborhoods will be interesting. Investors don’t care if they never have to live in the house.
But where do they get the money?
Investor driven demand? From equity in their existing home usually. Look at HELOC and refinance withdrawal numbers. A lot of mortgages are at the same level of debt as they were 10 years ago.
Money launderers aren’t asked that question, why not?
Did everyone in toronto get a 100,000 dollar raise? or is this money coming from shell companies?
What ever happened after the investigations into money laundering?
I’ll tell you – NOTHING!
Debt. Borrowed money from a fractional reserve banking system, backed by assets with a paper value.
Where the “tick tock” guy? :))
Probably enjoying a detached he bought at 20% off from the price when people thought Toronto was running out of land?
lol. I’ve always known I’ve had my own groupies…SCE, where you at? You can call me Blue, or Bluey, or Blue Bear or Baby cakes, whatever you want btw. Heck, I’d even like some expletives, I always like to get spit on but I generally have to pay for it, lol.
I need to tone it down or this won’t make it through but I’ll leave you with the below and let me know if anything is incorrect:
Consumer debt ,unless it represents a sustainable % of disposable, is unproductive.
Incomes do not match the current debt levels.
Disposable income is lower than when rates were 13% and is getting worse.
Despite what the Fed/BOC says, inflation is alive and well.
We aren’t saving enough for retirement and low rates are killing pensions.
People are desperate.
Using one form of an asset class as leverage for another only leads to amplified pain.
Condos don’t make the market, it is always SFH.
SFH are printing lower lows and are not back to peak.
Everything is awesome until it isn’t.
Up or down, Blue wins.
Blue is just some guy who makes hamster pants and is kind of an idiot with impulse issues.
And for the record it’s ‘Tock’.
BD4L
Here’s a better question.
Why is Vancouver real estate declining? Is Vancouver in recession? Have these national plans been applied differently? Are people in Vancouver more willing to take a loss on real estate? Are people just that passive in real estate selling?
Go on, answer why Vancouver’s real estate his currently declining. I’m dying to know why.
Government/CMHC put in a floor with their new plan… what a great policy that was, but hey it’s an election year.
Hey all the bears so again when Toronto market going to collapse exactly? Can you come with the date please. Blue Bear where are you? No comments from you lately? Meanwhile my 2 condos occupancy coming next year with 300 K profit and counting on each of them. As I said all along it’s supply and demand in Downtown Toronto. You cannot afford to live in Toronto move elsewhere : there are triple amount of people coming in with enough money to afford. Tik Tok?
Amateur investors are the best. Zoom in on the cheapest segment of housing, that’s also a smaller market than detached housing, and ignore the rest of it. It’s going up!
I’m sure condos will always go up forever and ever and ever and ever. It’s been three years after all, and then you can just focus on those three years repeating.
I think your response will be lost of Gear74…this person probably has a few screws loose which is why he’s short a gear…should be Gear75 but here where are.
Every city in Canada has his own micromarket considerations and benefits. I am only talking about City of Toronto and even more specifically condos in Downtown Toronto. Couldn’t care less about Calgary or Halifax. Just watch this and tell me if you won’t agree with something said here : https://youtu.be/l0kwQvE0-vw
Good luck all the Blue Bears!
It seems Banks are offering incentives for savings which seems strange. Canadian Banks have not been previously interested in helping savings accounts grow i.e. Flexible increase your own rate GIC, higher interest savings accounts or even credit Union offering investment shares. My question is with an overvalued market and everyone borrowing through HELOCS how soon would we realize if there is a shortage of cash at Banks due to financial disintermediation?