Strong Condo Sales and Price Growth in Q3 2015
Greater Toronto Realtors reported 6,586 condo apartment sales through the MLS in the 3rd quarter of 2015. The number of transactions represented a 10.8% increase compared to 5,986 transactions reported in Q3 2014.
In the City of Toronto, which accounted for 70% of condo apartment sales in the GTA, sales were up by 9.7%. The average selling price in Toronto was $405,865 up 6.2% from Q3 2014.
The number of new listings in the GTA reported in Q3 was up by 6.6% compared to the same period in 2014.
“The condominium apartment segment has been a key contributor to overall growth in GTA home sales this year. With continued sales growth expected in the fourth quarter, we are on track for a new record in condo transactions through TREB’s MLS System this year ,” said Toronto Real Estate Board President Mark McClean.
“ As the absorption rate for condos accelerated over the last year, tighter market conditions have resulted in sustained price growth,” continued McLean.
The average GTA selling price grew in Q3 up by 5.4% from the same time last year to $379,006.
“The condominium apartment market has certainly benefited from an increase in the supply of listings over the last year. However, through the first three quarters of 2015, growth in sales has actually outstripped growth in listings. This suggests that there was a certain amount of pent-up demand for condominium apartments. As new projects have completed, investor-held units listed for sale have been absorbed very quickly by end users, to the point where price growth has remained strong,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.
Other notable statistics include the average days on the market for Q3 at 32 days. Active listings were 6,659 in Q3-down 0.6% from Q3 2014.
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 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 downtown core rental transactions in Q3 along with the number of units listed for rent.
Many renter households continued to look toward investor-owned condominium apartments to meet their housing needs.
Average rents for popular one-bedroom and two-bedroom units were up slightly on a year-over-year basis.
The condo apartment vacancy rate for Toronto was 1.3% which is very low.
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