Canada's Condominium Magazine
As expected, condo prices continue to rise on demand for more affordable homes. In the latest report from the Toronto Real Estate Board (TREB), condo resale prices not only held their ground, they increased by nine percent.
“Seller’s market conditions for condominium apartments remained firmly in place in the first quarter of 2018,” said Toronto Real Estate Board President Tim Syrianos. “Strong competition between buyers underpinned price growth well above the rate of inflation. We expect the condo market segment to remain strong through the remainder of 2018 and over the longer term, as buyers continue to see ownership housing as a quality long-term investment.”
The average price for condos in the first quarter of 2017 — a very hot market period — was $489,599. In the same quarter for 2018, prices averaged $533,447.
Despite some decline year-over-year in condo sales, the overall dollar volume on condos came in at $2,712,043,110 on 5,084 sales, with an average selling price of $533,447. Although sales are down year-over-year by 29.7 percent — also expected considering last year was a ferocious market — listings were also down by 11.1 percent, which may further put pressure on condominiums.
Inventory at record lows
The largest number of sales, 1500 condo sales, sold at the $400,000 to $499,999 range, with nearly another 1,000 sold in the $500,000 to $599,999. Nearly 200 sold for over $1 million.
In fact, inventory levels are at “record lows” according to a TREB release, “with months of inventory continuing to trend between 1.5 and 2.0 months, market conditions remain very tight from a historic perspective.”
Jason Mercer, TREB’s Director of Market Analysis explains the market this way:
“The condominium apartment market segment continues to have the lowest price point on average compared to other major low-rise home types. It stands to reason that condos remain popular with first-time buyers. Strong demand relative to supply will see this segment perform well from a pricing standpoint for the remainder of 2018 and beyond.”