New numbers from the Ontario & Quebec show both condo prices and sales having jumped significantly over the last year as buyers find themselves priced out of single-family homes.
“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,” Jason Mercer, TREB’s Director of Market Analysis, said in a release sent to REP.
“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.”
His comments follow Toronto Real Estate Board president’s Mark McLean’s announcement that there were 7,656 condominium apartments sold through the MLS system in the second quarter of 2015, which represents a 17 per cent spike year-over-year.
Demand for condos is at an all-time high as millennials and first-time buyers look to affordably enter the market while maintaining a property with some kind of appreciation value.
According to TREB, sales growth greatly outpaced growth in listings, with new listings up by a modest 7.3 per cent year-over-year and active listings at the end of the second quarter down by 1.3 per cent.
“Much of the new condominium apartment inventory that has been brought to bear on the market in the recent past has been absorbed,” McLean told REP in a release. “In fact, market conditions have tightened with months of inventory trending lower.”
The average selling price for condominium apartments in the TREB market area as a whole grew by 5.8 per cent year-over-year to $388,066. In the City of Toronto, which accounted for 70 per cent of sales in the GTA, the average selling price of $416,728 represented a 6.1 per cent increase compared to Q2 2014.