Strong Condo Sales and Price Growth in Q1 2016
Greater Toronto Realtors reported 5,974 condo apartment sales through the MLS in the first quarter of 2016. The number of transactions represented a 21.2% increase compared to 4,930 transactions reported in Q1 2015.
In the City of Toronto, which accounted for 70% of condo apartment sales in the GTA, sales were up by 20.0%. The average selling price in the City of Toronto was $423,166 up 9.7% from Q1 2015.
The number of new listings in the GTA reported in Q1 was down by 1.7% compared to the same period in 2015.
“It is clear that the demand for condominium apartments more than kept up with the supply of listings in the first quarter of this year. This housing type is an important entry point into home ownership for a lot of GTA households, particularly in the City of Toronto. Recent polling undertaken for TREB by IPSOS suggested that approximately half of home purchases made in the GTA this year would be accounted for by first-time buyers ,” said Toronto Real Estate Board Mr. McLean.
The average GTA selling price grew in Q1 up by 8.1% from the same time last year to $393,589.
“While the condominium apartment market segment remains the best supplied in the GTA, market conditions have tightened considerably since the first quarter of 2015. Not surprisingly, the pace of year-over-year price growth has accelerated over the same period of time,” said Jason Mercer, TREB’s Senior Manager of Market Analyses.
Other notable statistics include the average days on the market for Q1 at 31 days. Active listings were 5,245 in Q1-down 15.9% from Q1 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 6,458 condominium apartment rental transactions reported through TREB’s MLs system during Q1 2016. This result represented a year-over-year increase of 6.5% compared to Q1 2015.
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 Q1 2016 was 1.8%.
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