Condo Market Conditions Tightened Further in Q1 2017
Greater Toronto Realtors reported 7,251 condo apartment sales through the MLS in the first quarter of 2017. The number of transactions represented a 21.7% increase compared to 5,959 transactions reported in Q1 2016.
In the City of Toronto, which accounted for 70% of condo apartment sales in the GTA, sales were up by 18.8%. The average selling price in the City of Toronto was $521,842 up 23.2% from Q1 2016.
The number of new listings in the GTA reported in Q1 was down by 18.8% compared to the same period in 2016. The number of active listings in the GTA reported in Q1 was down by 63.4% compared to the same period in 2016.
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.
“Condominium apartments have historically been the housing type of choice for many first-time buyers due to the relatively low price point compared to ground oriented housing options. Given that more than half of intending home buyers are expected to be first-time home buyers in 2017, according to a recent Ipsos poll conducted for TREB, it makes sense that demand for this housing type has remained strong,” said Toronto Real Estate Board Larry Cerqua.
The average GTA selling price grew in Q1 up by 24.3% from the same time last year to $489,551.
“Market conditions became much tighter in the condominium market segment over the past year, with sales accounting for a greater share of listings. As competition between buyers increased further, the pace of price growth accelerated,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.
Other notable statistics include the average days on the market for Q1 2017 at 16 days, down from 31 days in Q1 2016.
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 Q1 2017 was up on a year-over-year basis but by less than 1%.
Greater Toronto Area lease transactions were up by 3.5% in Q1 2017 compared to Q1 2016.
With demand for condominium apartment rentals remaining very strong, 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 7.8 per cent on a year-over-year basis to $1,791. The average two-bedroom rent was up by 6.8 per cent to $2,432.
The vacancy rate for a condo apartment in the City of Toronto for Q1 2017 was 1.0%.
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