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.
Source: TREB.
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.
Like this post? Like us on Facebook for the next one in your feed.
“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.”
Yet salaries in Toronto are barely increasing at 0.5%, even if at all. The price of groceries are increasing, everything is increasing except salaries, unless of course, you are a Champagne Liberal working in a comfy career with a lavish pension after age 45.
Toronto is a city of have and have nots!
Actually, I am planning to renting an apartment for my friend. After reading this, I am in little trouble that Is it the right time for renting? or skip this idea for sometime.
Condo prices were pretty stagnate, in many buildings (and areas) from 2011 to 2015… played some aggressive catch up. But prices are pausing now… similar thing happened in other cities when prices jump 30% in a year.
The market needs 18-24 months of sideways action…. developers are bringing on loads of inventory at prices they never expected to get a year ago.
Why don’t I ever see price increase month over month… of course year over year is hovering 30% cos last month we have 28% year over year LOL… if you want to compare how prices are doing since the implementation of the 16 point fair housing plan, you need to remember that April 20, 2017 is the date and not 2016 April or May!! Secondly, this is only a bill for now and the full effect can be measure only once this is becomes a law. Also, the real estate reporting is a lagging indicator… Once Home Trust will go under Chapter 11 and the subprime will go into red, we will still need few months or so to see the real effect…