Average selling price of a resale condo unit jumps 10%

The Toronto Real Estate Board released its monthly resale market figures for September 2018, reporting a slight increase in sales and average selling price compared to the same month last year.

In September 2018, there were 6,455 sales reported through the MLS system, which is a 1.9% increase year-over-year. The average selling price jumped 2.9% to $796,786. 

“It is healthy to see sales and prices in many areas across the Greater Toronto Area up a bit, compared to last year’s lows,” says TREB President Garry Bhaura. “At the same, however, it is important to remember that TREB’s market area is made up of over 500 communities.  Market conditions have obviously unfolded differently across these communities. This is why it’s important to work with a REALTOR® who is familiar with local market conditions in your areas of interest.”

There were 1,074 townhome sales, which is 8.5% higher than last year. This was the greatest jump in year-over-year sales. Even though condos remain the most affordable housing type, sales actually dropped 3.2% compared to the same period last year with 1,791 transactions.

While condo sales were lower than last year, the average selling price grew by 10% to $570,140. This was the greatest increase in average selling price out of all the housing types. The only drop in average selling price was seen in the detached home market, where it fell 0.6% to $1,008,361.

“Generally speaking, annual rates of price growth have been stronger for higher density home types in 2018, including condominium apartments, townhouses and semi-detached houses,” says Jason Mercer, TREB’s Director of Market Analysis. “In many neighbourhoods, these home types provide more affordable homeownership options. This is why a policy focus on increasing mid-density housing options throughout the GTA is important.”

New listings in September 2018 amounted to 15,920 by the end of the month, which is 3.1% lower than the inventory level in September 2017.

“While higher borrowing costs and tougher mortgage qualification rules have kept sales levels off the record pace set in 2016, many households remain positive about home ownership as a quality long-term investment,” explains Bhaura. “As the GTA population continues to grow, the real challenge in the housing market will be supply rather than demand. The Toronto Real Estate Board is especially concerned with issues affecting housing supply as we move towards municipal elections across the region.”

Yesterday, TREB hosted an election forum with mayoral candidates John Tory and Jennifer Keesmaat. The candidates addressed real estate and housing issues, and also took questions from TREB members. Unfortunately, both candidates said that repealing the city’s land transfer tax is not possible at this time.   

Recent poll results released by TREB and the Building Industry and Land Development Association demonstrate how housing affordability is a top issue for many GTA residents. You can read more about the results here.