Toronto’s condo market is seeing more action than usual. According to the Toronto Real Estate Board (TREB), condos sales are growing faster than all other segments. Which is really impressive if you’ve been following the rest of the city’s real estate market. Condos in the city saw higher prices, less listings, and even more sales than the same time last year.
Prices Increased By Over 30%
Condos across the Greater Toronto Area (GTA) experienced the highest price increases of any housing type. TREB saw the average price climb to $541,393, a 32.1% increase from the same time last year. Breaking that down, the 905 region saw prices climb to $449,792, a 31% increase. The city of Toronto proper saw prices climb the highest, with the average sale closing at $578,280 – a 32.3% increase from last year. This is a significantly higher increase than observed across the broader market.
Toronto Condo Listings Declined
The TREB region saw listings drop, unlike the detached market. April saw 4,376 new listings, a decline of 3.63%. In the City of Toronto, the number of listings compared to last year remain virtually unchanged. There were 3,178 listings, just 11 fewer than the same time last year. If you thought condo inventory felt light in 2016, this year should feel about the same.
Condo Sales Increased
Sales of condos in the GTA are increasing, and at a faster rate than listing growth. TREB logged 3,013 sales last month, a 7.7% increase from last year. The 905 grew a little below the average, with the region seeing 865 sales, a 6.9% increase. The 416 saw these numbers grow a little faster, with 2,148 sales, an 8.0% increase. Since sales are growing at a faster rate than listings, this could apply more pressure to prices.
The new listing vs. sales divergence in April looks bad, but I wouldn’t jump to a conclusion yet. The spread between new listings and sales is actually closer than the same time last year. It’s a trend worth noting however. Source: TREB.
More sales, and less condo inventory results in higher prices, so this shouldn’t be a surprise. The rapid rise of prices has many first-time buyers scrambling to get what they can afford. Competition for lower priced units like condos results in a higher floor for all home prices.
Personally, I don’t expect any near term swings in this market. The province called out domestic speculators as a driver of this segment, but hasn’t rolled out any measures to address them yet.
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