Are Condos in the GTA Going to Get Way More Expensive this Year?
By Lucas on Jul 20, 2015
The Toronto Real Estate Board (TREB) recently released its second quarter (Q2) condo market figures for the GTA’s resale market, announcing a significant growth in both transactions and average selling price.
“Much of the new condominium apartment inventory that has been brought to bear on the market in the recent past has been absorbed,” says TREB President, Mark McLean. “In fact, market conditions have tightened with months of inventory trending lower. This suggests that recent condominium apartment completions, while strong from a historic perspective, simply helped satisfy a growing demand for this housing type. Absorption rates and price growth statistics point to a healthy market.”
In Q2-2015, there were 7,656 condo sales reported through the MLS system, which is a year-over-year increase of 17%. Sales growth dramatically outpaced listings, which only grew by 7.3% year-over-year, and active listings at the end of Q2 were actually down 1.3%.
The average selling price of a condo unit in the GTA went up 5.8% to $388,066, but in the City of Toronto, where 70% of the condo sales were located, the average selling price was slightly higher at $416,728 (a 6.1% increase).
“Condominium apartment prices have been appreciating at a moderate pace, on average, over the past year, especially when compared to low-rise home types like detached and semi-detached houses and townhouses,” explains Jason Mercer, TREB’s Director of Market Analysis. “However, it is possible that we could see an acceleration in condo price growth in the second half of this year, as growth in sales remains strong relative to growth in listings.”
If you’re in search of the condo lifestyle, but don’t want to pay the extra money for the convenience that Toronto’s amenities can offer, then you should probably look elsewhere in the GTA, such as Durham Region where the average selling price of a resale condo unit was just $266,412. Peel Region also had a low average selling price of $277,706.
Will the lack of listings really cause condo prices to surge in the second half of 2015? There are plenty of new construction condos in Toronto, so perhaps buying new is the way to go!
