Will condo sales in Peel and Durham increase this year?
By Lucas on Jan 31, 2017
The Toronto Real Estate Board (TREB) released its condo market report for the fourth quarter of 2016, announcing that there was a double digit increase in sales growth and a double digit drop in the percentage of new listings compared to 2015.
There were 6,831 condo sales in the GTA reported through the MLS in the fourth quarter of 2016, which is a 22.3% year-over-year increase. New listings dropped by 13.4%. Sales are up so demand is strong, and if inventory is dropping, that means prices are going up.
“Gone are the days when we were concerned about a potential glut in inventory in the condominium apartment market,” says TREB President Larry Cerqua. “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.”
As usual, the vast majority of condo sales were in the City of Toronto. There were 4,842 sales in the fourth quarter, which is a 70% share. The area with the second most condo sales was Peel Region with 886 sales. The average selling price in Toronto was above the GTA average, coming in at $465,403. The average in Peel was just $331,224.
“First-time buyers represent an important component of home ownership demand,” says Jason Mercer, TREB’s Director of Market Analysis. “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.”
Overall, the average selling price for a condo unit in the GTA went up 14.5% to $437,281. If prices continue to increase at this rate throughout 2017, first-time buyers may be priced out of the market. Then where would they go? Is 2017 the year we see more first-time buyers extending their condo search outside of Toronto into the suburbs of the GTA?
Peel is an option with a pretty affordable average, and Durham had the lowest average selling price of $324,295. The average in York was $403,375. Halton remains slightly unaffordable for most first-time buyers, with an average selling price of $442,613.
