Strong Condo Sales and Price Growth in Q4 2016
Greater Toronto Realtors reported 6,831 condo apartment sales through the MLS in the fourth quarter of 2016. The number of transactions represented a 22.3% increase compared to 5,587 transactions reported in Q4 2015.
In the City of Toronto, which accounted for 71% of condo apartment sales in the GTA, sales were up by 22.2%. The average selling price in the City of Toronto was $465,403 up 14.1% from Q4 2015.
The number of new listings in the GTA reported in Q4 was down by 13.4% compared to the same period in 2015. The number of active listings in the GTA reported in Q4 was down by 56.8% compared to the same period in 2015.
With a double-digit annual increase in sales and a double-digit annual decline in new listings, condo market conditions tightened substantially over the past year.
“Gone are the days when we were concerned about a potential glut in inventory in the condominium apartment market. The supply concerns that have been top-of-mind for ground-oriented home types are also now a reality for the condo market segment. Regardless of the price measure considered, heightened competition between condo buyers has resulted in double-digit price inflation,” said Toronto Real Estate Board Larry Cerqua.
The average GTA selling price grew in Q4 up by 14.5% from the same time last year to $437,281.
“First-time buyers represent an important component of home ownership demand. Many households looking to purchase their first home will consider a condominium apartment. Interest in this market segment has continued to grow as prices for low-rise home types have increased on a sustained basis,” said Jason Mercer, TREB’s Senior Manager of Market Analyses.
Other notable statistics include the average days on the market for Q4 2016 at 23 days, down from 33 days in Q4 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.
The number of condominium apartments listed for rent in the fourth quarter of 2016 was down substantially (-14.2 per cent) compared to Q4 2015. This lack of inventory was at the root of the dip on rental transactions (-5.8 per cent).
With demand for condominium apartment rentals remaining very strong and supply diminishing markedly, the annual growth rate for average rents was well-above the rate of inflation for one-bedroom and two-bedroom unit types.
The average one-bedroom rent for the TREB market area as a whole was up by 7.4 per cent on a year-over-year basis to $1,776. The average two-bedroom rent was up by 8.0 per cent to $2,415.
The vacancy rate for a condo apartment in the City of Toronto for Q4 2016 was 1.0%.
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