Toronto real estate has been on the decline, but condos are taking a breather from the downtrend. Toronto Real Estate Board (TREB) numbers show prices are higher, marking the end of a 3 month losing streak. Generally speaking, the market saw more inventory, less sales, and higher prices.
Condo Prices Are Almost 23% Higher
The benchmark condo price broke a three month losing streak, making a jump higher. The price of a typical condo was $463,800 in October, 0.78% higher than the month before. This represents a 22.99% increase from the same time last year. The price growth trend continues to taper, but is still above 20%. It’s pretty hard to argue the market is “cooling,” but don’t expect huge gains in the near term.
The average sale price of condos are still retaining gains compared to last year. The average sale in October was $523,041, a 21.8% increase from the same month last year. Breaking that down, the City of Toronto had an average sale price of $555,004, which is 20.9% higher than last year. The 905 regions had an average sale price of $435,142, 21.0% higher than last year.
New Condo Listings Are Over 1% Higher Than Last Year
Condo inventory was higher this month, coming off of last year’s lows. New listings across TREB hit 3,359 in October, a 1.23% increase compared to last year. The City of Toronto saw 2,324 new listings, which is actually a decline of 2.8% compared to last year. Total inventory remained higher, with active condo listings reaching 3,873 across TREB, an 11.74% increase from last year. The City of Toronto had 2,549 of those listings, a 1.51% increase compared to last year. Despite what you’ve been hearing, inventory doesn’t matter unless compared to sales. Let’s look at how this stacks up.
Condo Sales Declined Almost 25%
Condo sales across Greater Toronto are dropping. TREB saw 2,025 sales, a 24.9% decline compared to the same month last year. Breaking that down, 1,485 of those sales occured in the City of Toronto, a decline of 21.63% from last year. Toronto’s suburbs saw 540 of those sales, a 33% decline from last year. Contrasting these numbers to listings, the sales to new listings ratio is now 60%, a 25% decline from last year. This means there’s less pressure for prices to rise, but the market is still in favor of sellers.
Toronto condos are still a sellers market, meaning buyers are still paying whatever they want. This segment hasn’t had a major pullback in recent time, but price growth is tapering very quickly. This is expected after the huge run, especially when combined with the tens of thousands of pre-construction units hitting the market. Pre-construction won’t provide much relief in the near term for those looking for immediate occupancy. However, it will deter many buyers from the immediate market.
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