GTA Condo Market Report Q4 2016

Strong Condo Sales and Price Growth in Q4 2016

Greater Toronto Realtors reported 6,831 condo apartment sales through the MLS in the fourth quarter of 2016. The number of transactions represented a 22.3% increase compared to 5,587 transactions reported in Q4 2015.

In the City of Toronto, which accounted for 71% of condo apartment sales in the GTA, sales were up by 22.2%. The average selling price in the City of Toronto was $465,403 up 14.1% from Q4 2015.

The number of new listings in the GTA reported in Q4 was down by 13.4% compared to the same period in 2015. The number of active listings in the GTA reported in Q4 was down by 56.8% compared to the same period in 2015.

With a double-digit annual increase in sales and a double-digit annual decline in new listings, condo market conditions tightened substantially over the past year.

“Gone are the days when we were concerned about a potential glut in inventory in the condominium apartment market. The supply concerns that have been top-of-mind for ground-oriented home types are also now a reality for the condo market segment. Regardless of the price measure considered, heightened competition between condo buyers has resulted in double-digit price inflation,” said Toronto Real Estate Board Larry Cerqua.

The average GTA selling price grew in Q4 up by 14.5% from the same time last year to $437,281.

“First-time buyers represent an important component of home ownership demand. Many households looking to purchase their first home will consider a condominium apartment. Interest in this market segment has continued to grow as prices for low-rise home types have increased on a sustained basis,” said Jason Mercer, TREB’s Senior Manager of Market Analyses.

Other notable statistics include the average days on the market for Q4 2016 at 23 days, down from 33 days in Q4 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.

The number of condominium apartments listed for rent in the fourth quarter of 2016 was down substantially (-14.2 per cent) compared to Q4 2015. This lack of inventory was at the root of the dip on rental transactions (-5.8 per cent).

With demand for condominium apartment rentals remaining very strong and supply diminishing markedly, the annual growth rate for average rents was well-above the rate of inflation for one-bedroom and two-bedroom unit types.

The average one-bedroom rent for the TREB market area as a whole was up by 7.4 per cent on a year-over-year basis to $1,776. The average two-bedroom rent was up by 8.0 per cent to $2,415.

The vacancy rate for a condo apartment in the City of Toronto for Q4 2016 was 1.0%.

Do you have any questions about Toronto Real Estate? Please contact me direct at or by email, David@DavidStoddard.ca

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Please contact me direct at 416-520-6746 or by email, David@DavidStoddard.ca

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Amazing Clients! Amazing Results!

“As first-time home buyers working with David was a pleasure. He made sure we fully understood the processes involved in buying a home, and answered the numerous questions we had along the way. Always quick to reply, we felt at ease working with him. David showed us homes that met our needs, but did not exceed our limitations. We felt confident knowing that our best interests were kept in mind, and that he was putting his best effort forward to find the perfect fit for us. We love our first home, and could not have found it without David’s expertise and the excellent professionals he works with. We would most definitely refer David to any of our friends or family members.”

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– Emily & Matt

Please contact me direct at 416-520-6746 or by email, David@DavidStoddard.ca

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Oh, by the way……if you know of someone who would appreciate the level of service I provide, please call me, text me or email me with their name and number. I’ll be happy to follow up and take great care of them.

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– Miguel M

Please contact me direct at 416-520-6746 or by email, David@DavidStoddard.ca

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Oh, by the way……if you know of someone who would appreciate the level of service I provide, please call me, text me or email me with their name and number. I’ll be happy to follow up and take great care of them.

GTA Real Estate Market Report December 2016

Record Sales in 2016

 

Greater Toronto Realtors reported 5,338 residential sales through the Toronto MLS system in December 2016. The number of transactions in December represented a 8.6% increase compared to 4,917 transactions reported in December 2015.

For the region as a whole, strong annual rates of sales growth were experienced for detached homes and condo apartments. The pace of semi-detached sales growth and townhouse sales growth was slower. The year-over-year dip in new listings was likely the issue.

Condo apartments in the GTA had the highest sales increase year-over-year at 18.5%.

The overall sales for calendar year 2016 was 113,133, a record year and up11.8% compared to 2015.

The number of new listings reported in December was down 11.7% compared to the same period in 2015. Active listings were 4,746 in December-down 48.1% from December 2015.

“A relatively strong regional economy, low unemployment and very low borrowing costs kept the demand for ownership housing strong in the GTA, as the region’s population continued to grow in 2016,” said Larry Cerqua, TREB’s President.

The average price in December was up by 20.0% from the same time last year to $730,472. Townhouse homes in the GTA led the way in terms of an average price increase at 23.7% compared to the same time last year.

The overall selling price for calendar year 2016 was $729,922, up 17.3% compared to 2015.

“Price growth accelerated throughout 2016 as the supply of listings remained very constrained. Active listings at the end of December were at their lowest point in a decade-and-a-half. Total new listings for 2016 were down by almost 4%. In 2016, we saw policy changes and policy debates pointed at the demand side of the market. If we want to see a sustained moderation in the pace of price growth, what we really need is more policy focus on issues impacting the lack of homes available for sale,” said Jason Mercer, TREB’s Director of Market Analysis.

Sales of Toronto (416 area code) condominium apartments increased by 19.5% in December 2016. The average selling price of a Toronto condo increased by 16.6% in December 2016 from the same time last year to $466,592.

Condominium apartments accounted for 32.4% of total GTA sales in December while detached homes accounted for 42.3% of the total sales.

Other notable statistics include the average days on the market for December at 20 days, down 31.0%. The sales-to-listings ratio for December 2016 was 112.0% which is classified as a very big seller’s market. A ratio from 24%-28% is considered a balanced market.

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 neighbourhood specific, building specific  and even very street specific in some areas. The numbers as reported above are GTA averages. Results in one neighbourhood , on one street or in one building do not indicate that all other neighbourhoods, streets or buildings are experiencing the same results. We are still seeing multiple offers in some areas for the best homes and condos.

 

For all of your real estate questions please contact me direct (416-520-6746) or by email, David@DavidStoddard.ca

** You can follow my real estate posts on FACEBOOK. Click here to LIKE my real estate page

Oh, by the way……if you know of someone who would appreciate the level of service I provide, please call me, text me or email me with their name and number. I’ll be happy to follow up and take great care of them.