Strong Price Growth Continues in Condo Segment
Greater Toronto area Realtors reported 5,084 condo apartment sales through the MLS in Q1 2018. The number of transactions represented a 29.7% decrease compared to 7,234 transactions reported in Q1 2017.
In the City of Toronto, which accounted for 71.0% of condo apartment sales in the GTA, sales were down by 28.6%. The average selling price in the City of Toronto was $572,391 up 9.6% from Q1 2017.
The number of new listings in the GTA reported in Q1 was down by 11.1% compared to the same period in 2017. The number of active listings in the GTA reported in Q1 was up by 56.7% compared to the same period in 2017.
“Seller’s market conditions for condominium apartments remained firmly in place in Q1 2018. Strong competition between buyers underpinned price growth well above the rate of inflation. We expect the condo market segment to remain strong through the remainder of 2018 and over the longer term, as buyers continue to see ownership housing as a quality long-term investment,” said Toronto Real Estate Board President Tom Syrianos.
The average GTA selling price grew in Q1 up by 9.0% from the same time last year to $533,447.
“The condominium apartment segment continues to have the lowest price point on average compared to other major low-rise home types. It stands to reason that condos remain popular with first-time buyers. Strong demand relative to supply will see this segment perform well from a pricing standpoint for the remainder of 2018 and beyond” said Jason Mercer, TREB’s Senior Manager of Market Analyses.
Other notable statistics include the average days on the market for Q1 2018 at 23 days, up from 16 days a year earlier.
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 pace of average rent growth continues well-above inflation.
The number of GTA condominium apartments listed for rent in Q1 was down on a year-over-year basis by 11.8%.
The number of GTA condominium apartments leased in Q1 was down on a year-over-year basis by 7.5% due to the lack of supply.
The average one-bedroom rent for the TREB market area as a whole was up by 11.4% on a year-over-year basis to $1,995. The average two-bedroom rent was up by 9.1% to $2,653.
The vacancy rate for a condo apartment in the City of Toronto for Q1 2018 was 0.7%.
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