Canada's Condominium Magazine
With new listing inventory down 15.9% in 2018 (versus 2017) pressure on condo pricing will increase. Condo apartments out-performed all other housing types in Toronto, despite rising prices.
In Toronto, prices were up 6.5% year-over-year to $603,480 for the second quarter 2018, from an average of $566,873 in 2017. This is expected to continue, as first-time home buyers and down-sizers are driving the market. For first-time buyers in the GTA, condominiums are often the only option.
TREB President Garry Bhaura explained,
“Condominium apartments have outperformed other housing types over the past year, in terms of price growth. It has been a seller’s market in many neighbourhoods for this home type, which is why we have continued to report average price growth more than twice the rate of inflation.”
6,837 sales in Q2 2018
Sales are, as expected, down from the same period in Q2 2017, in part due to low inventory. Sales through the TREB MLS System hit 6,837 in that period.
“First time buyers continue to be a key driver of condominium apartment demand,” said Jason Mercer, TREB’s Director of Market Analysis. “The relative affordability of condos versus low-rise home types, especially with the onset of stricter mortgage qualification guidelines and generally higher borrowing costs, has also been a key factor underpinning tight condo market conditions and continued average price growth.”
Prices up in all areas except York Region
Although there were a couple of “blips” — York Region actually dropped slightly on the average price in 2018, and Halton Region actually increased sales — most of the areas are consistently up in price and down on sales volume:
- In overall TREB system: 6,837 sales at an average price of $561,338 in 2018; versus 8,188 in 2017 at $532,403
- In Toronto: 4906 sales at an average price of $603,480 in 2018; versus 5,856 in 2017 at $566, 873
- In Halton Region: 311 sales at an average price of $513,275 in 2018; versus 277 in 2017 at $510,785
- In Peel Region: 894 sales at an average price of $419,790 in 2018; versus 1,145 in 2017 at $532,403
- In York Region: 571 sales at an average price of $492,517 in 2018; versus 738 in 2017 at $502,578
- In Durham Region: 137 sales at an average price of $400,182 in 2018; versus 151 in 2017 at $389,235
Mr Bharua explained:
“For many people, condominiums are the only realistic housing option, even if they may prefer a different lifestyle. There is simply not enough supply of housing to meet the need for home types between detached homes and condominium apartments. This could help provide affordable options for home buyers and TREB looks forward to raising this issue during the upcoming municipal election campaign in our determination to find ways to get more of this type of housing into the market.”