Condo Market Conditions Remain Tight in Q3 2017
Greater Toronto area Realtors reported 5,684 condo apartment sales through the MLS in the third quarter of 2017. The number of transactions represented a 28.9% decrease compared to 7,991 transactions reported in Q3 2016.
In the City of Toronto, which accounted for 73.4% of condo apartment sales in the GTA, sales were down by 34.0%. The average selling price in the City of Toronto was $542,492 up 23.0% from Q3 2016.
The number of new listings in the GTA reported in Q3 was down by 10.2% compared to the same period in 2016. The number of active listings in the GTA reported in Q3 was down by 1.0% compared to the same period in 2016.
“The condominium apartment market segment has exhibited the strongest average rates of price growth since the spring, relative to other major market segments. Competition between buyers remain strong, as listings remain below last year’s very constrained levels. Over the past few months, TREB has participated in discussions at various levels of government pointed at developing solutions for the housing supply issue in the GTA. As these discussions continue, it will be important to remember that the condominium market is not immune to a listings shortage,” said Toronto Real Estate Board President Tom Syrianos.
“TREB will be paying close attention to the potential impacts of the new OFSI Guideline B-20 concerning new mortgage rules and underwriting standards, and the possibility of a vacancy tax in the City of Toronto. We will be asking consumers about their opinion on these initiatives, from the prospective of buying and selling intentions, during our fall polling cycle,” continued Mr. Syrianos.
The average GTA selling price grew in Q3 up by 22.7% from the same time last year to $510,206.
“Condominium apartments will likely account for a greater share of home sales as we move forward. Consumer polling undertaken for TREB by Ipsos in the spring pointed to increased buying intentions for condominium apartments. With this in mind, it is not surprising that we have continued to see robust price growth, as demand has remained strong relative to available listings” said Jason Mercer, TREB’s Senior Manager of Market Analyses.
Other notable statistics include the average days on the market for Q3 2017 at 22 days, down from 25 days in Q3 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 pace of average rent growth continues well-above inflation.
Greater Toronto Area Realtors reported 8,716 condominium apartment lease transactions in Q3 2017 down by 5.0% from Q3 2016.
The number of condominium apartments listed for rent in Q3 was down on a year-over-year basis by 3.9%.
The average one-bedroom rent for the TREB market area as a whole was up by 11.2 per cent on a year-over-year basis to $1,976. The average two-bedroom rent was up by 7.7 per cent to $2,607.
The vacancy rate for a condo apartment in the City of Toronto for Q3 2017 was 1.0%.
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