Current Market Conditions Tighten in Q2 2016
Greater Toronto Realtors reported 8,965 condo apartment sales through the MLS in the second quarter of 2016. The number of transactions represented a 17.4% increase compared to 7,637 transactions reported in Q2 2015.
In the City of Toronto, which accounted for 70% of condo apartment sales in the GTA, sales were up by 18.0%. The average selling price in the City of Toronto was $442,692 up 6.3% from Q2 2015.
The number of new listings in the GTA reported in Q2 was down by 7.9% compared to the same period in 2015.
“TREB Realtor members are involved in all aspects of the condominium apartment market in the GTA, from working with buyers at the pre-construction stage of development through to the resale or rental of existing units. While we have certainly seen a lot of condo construction over the last few years, project completions have not resulted in a glut of inventory. Over the past year, we have actually experienced tighter market conditions and accelerating rates of price growth,” said Toronto Real Estate Board Larry Cerqua.
The average GTA selling price grew in Q2 up by 7.1% from the same time last year to $415,326.
“Similar to low-rise market segments, we have seen growth in condo sales outstrip growth in condo listings this year. Seller’s market conditions exist for condominium apartments in many parts of the GTA including the downtown core. This is why we are seeing average price growth well above the rate of inflation,” said Jason Mercer, TREB’s Senior Manager of Market Analyses.
Other notable statistics include the average days on the market for Q2 at 25 days. Active listings were 5,185 in Q2-down 27.9% from Q2 2015.
Sellers are looking for market value for their property. I prepare a comparative market analysis (CMA) for all of my Buyer clients prior to submitting an offer to determine the property’s market value range
Real estate is very building specific. The numbers as reported above are GTA averages. Results in one building do not indicate that all other buildings are experiencing the same results.
There were 8,574 condominium apartment rental transactions reported through TREB’s MLS system during Q2 2016. This result represented a year-over-year decrease of 2.7% compared to Q2 2015. The decrease was due to the dip in listings. In the downtown core the number of rental transactions was up slightly.
Tighter market conditions translated into strong average annual rates of rent growth. GTA-wide, average one-bedroom and two-bedroom rents were up by more than the rate of inflation.
The vacancy rate for a condo apartment in the City of Toronto for Q2 2016 was 1.8%.
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