Canada's Condominium Magazine
Although sales are down 7.9% on resale condos, demand remains high and is fuelling the active new and prebuild markets. The latest Toronto Real Estate Board numbers reveal resale condo apartments up 16.4% average in price in the GTA, pressured by high demand against low listings. New listings, however, increased int he same period in response to demand, with over 18,197 active listings (for all home types) int he GTA, up 110.6% over 2016.
“We have seen an uptick in demand for ownership housing in the GTA this fall, over and above the regular seasonal trend,” explained Tim Syrianos, TREB President. “Similar to the Greater Vancouver experience, the impact of the Ontario Fair Housing Plan and particularly the foreign buyer tax may be starting to wane. On top of this, it is also possible that the upcoming changes to mortgage lending guidelines, which come into effect in January, have prompted some households to speed up their home buying decision.”
The resale numbers are based on 7,374 transactions in November through the MLS system. Any sales outside of this system, including prebuild and new inventory may not be included in these numbers. Overall, year over year sales are down 13.3% year over year for November on all home types, but only down 7.9% in condo apartments.
416 market dominated by condo apartments
The GTA market in the 416, continues to be dominated by condo apartments. In the 905, detached homes outsell condo apartments. This reinforces the trend previously reported in Condo.ca, of a strong preference shift to vertical condo living over detached housing in the urban 416 areas. Buyers in the 416 prefer short commutes and urban lifestyle. This preference was already indictated in buyer polls and surveys in early 2017:
“For example, nearly half (47 per cent) of respondents now see condominiums as a likely home choice for families within the next five years or so, assuming that builders provide condos that are large enough for families. At present, there is a perception that there are not enough family-friendly condos in Toronto, and that it is still more economical to buy outside the downtown core and commute.”.From our story “More Familes likely to choose condos” >>]
Average home price (all types) $761,757
Overall, the average home price is slightly down year-over-year for November, but up for condo-apartments and townhomes. The MLS Home Price Index was up 8.4 percent overall year-over year.
Jason Mercer, TREB’s Director of Market Analysis, explains: “Changes in market conditions have not been uniform across market segments. In line with insights from consumer polling undertaken by Ipsos in the spring, we are still seeing seller’s market conditions for townhouses and condominium apartments in many neighbourhoods versus more balanced market conditions for detached and semi-detached houses. We will have more insights to share about consumer intentions for 2018 at the end of January when TREB releases its third annual Market Year in Review and Outlook report,”