Third quarter condo sales up 11% compared to last year
By Lucas on Oct 19, 2015
The Toronto Real Estate Board (TREB) recently released its third quarter resale condo market results for 2015, announcing a huge jump in condo unit sales across the TREB market area.
“The condominium apartment market segment has been a key contributor to overall growth in GTA home sales this year,” says TREB President Mark McLean. “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. As the absorption rate for condos accelerated over the last year, tighter market conditions have resulted in sustained price growth.”
With a total of 6,586 condo sales in the resale market in the third quarter of 2015, condo transactions have experience a year-over-year increase of 11%. Since there was such a leap in sales, it’s not surprising to see that new listings and active listings are also up.
“The condominium apartment market has certainly benefited from an increase in the supply of listings over the past year,” says Jason Mercer, TREB’s Director of Market Analysis. “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.”
The average selling price of a condo unit in the resale market in the third quarter of the year saw a 5.4% year-over-year increase, hitting $379,006. The median selling price went up by 4.4%.
The region with the highest average selling price was unsurprisingly the City of Toronto, with an average of $405,865. Looking primarily at the City of Toronto is probably the most accurate reading of the GTA’s resale condo market because out of the total 6,586 sales during the quarter, 4,642 of them were in Toronto.
In the third quarter of 2014, there were 4,230 condo resales in Toronto, and the average selling price was $382,324, so year-over-year, the condo market in Toronto has experienced healthy growth and is still clearly a safe and worthwhile investment.
How will this year’s traditionally slow winter season compare to last year? Stay tuned!
