Condo Market Tightened in Q4 2015
Greater Toronto Realtors reported 5,595 condo apartment sales through the MLS in the fourth quarter of 2014. The number of transactions represented a 12.8% increase compared to 4,971 transactions reported in Q4 2014.
In the City of Toronto, which accounted for 71% of condo apartment sales in the GTA, sales were up by 11.3%. The average selling price in Toronto was $407,991 up 4.4% from Q4 2014.
The number of new listings in the GTA reported in Q4 was up by 3.3% compared to the same period in 2014.
“The condominium apartment segment is integral to the overall housing market in the GTA. Over the past decade, the trend has been increasingly build up due to provincial land use policies. As new projects have completed, a number of investor-held units have been listed for sale on TREB’s MLS System. These units have been absorbed quite rapidly, with enough demand relative to supply to prompt continued price growth ,” said Toronto Real Estate Board Mr. McLean.
The average selling price grew in Q4 up by 4.1% from the same time last year to $382,070.
“First-time buyers account for approximately half of all buyers in the GTA and even more so in the City of Toronto. Condominium apartments represent an important entry point into home ownership for a lot of households. This is a key reason why we experienced continued growth in sales for this home type over the past year” said Jason Mercer, TREB’s Senior Manager of Market Analyses.
Other notable statistics include the average days on the market for Q4 at 33 days. Active listings were 4,216 in Q4-down 5.6% from Q4 2013.
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 was an increase in the number of condo apartment rental transactions in Q4 along with the number of units listed for rent. However the annual growth rate for rental transactions was greater than the annual growth rate for the number of units listed. Market conditions became tighter.
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 Q4 2015 was 1.8%.
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