The latest news from the Toronto Real Estate Board (TREB) was great news if you’re looking to sell, and totally sucked if you’re looking to buy. Declines in inventory continued to get worse, while sales increased. This combined with the fear of getting priced out of the real estate market sent prices even higher for condos in January.
Prices Rose
The average price of a condo in the Greater Toronto Area (GTA) is still rising. The average price is now $442,598, a 14.5% increase from the same time last year. In the 905, average prices rose 18.5% to $379,169. Prices in Toronto proper rose just slightly below the average, with the average condo price reaching $471,409 – a 13.1% increase from the same time last year. This is a slightly slower rate of appreciation seen last month, when the average rose 16.5% year over year.
Toronto Condo Prices
Source:TREB.
Sales Grew
Sales experienced substantial growth across TREB’s regions. The GTA saw a total of 1,636 sales, an increase of 26.7% from January 2016. The majority of those sales were in the 416, where sales rose 26.8% to 1,125 condos. The burbs grew at a slightly slower 26.5%, to log 511 condo sales. This is impressive growth, especially when rising prices are factored in.
Toronto Condo Sales
Source:TREB.
Listings Declined
The number of condo listings declined…by a lot. The GTA saw a 25% decrease in new listings, with only 2,418 condos hitting the market in January 2017. The month also saw a decline of 57% in active listings, ending with just 1,946. This creates a little pricing pressure when combined with the increase in sales numbers.
Too wordy? More sales and less listings means more demand and less supply. Generally this would mean higher prices, although everyone (including a major bank now) is warning consumers to be careful of a Toronto real estate bubble.
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