The Toronto Real Estate Board announced that the average selling price for condominium apartments sold through TREB’s MLS® System in the second quarter of 2018 was up by 5.4 per cent year-over-year to $561,338.
The highest average selling price was in the City of Toronto, at $603,480 – up 6.5 per cent compared to Q2 2017.
“Condominium apartments have outperformed other housing types over the past year, in terms of price growth. It has been a seller’s market in many neighbourhoods for this home type, which is why we have continued to report average price growth more than twice the rate of inflation,” said Mr. Bhaura.
Condominium apartment sales through TREB’s MLS® System amounted to 6,837 in Q2 2018 – down 16.5 per cent from 8,188 sales reported in Q2 2017. However, the number of new condominium apartment listings was down by 15.9 per cent on a year-over-year basis. The fact that sales and new listings were down by similar annual rates suggests that market conditions have remained similar over the past year, which has supported continued price growth.
“First time buyers continue to be a key driver of condominium apartment demand. The relative affordability of condos versus low-rise home types, especially with the onset of stricter mortgage qualification guidelines and generally higher borrowing costs, has also been a key factor underpinning tight condo market conditions and continued average price growth,” said Jason Mercer, TREB’s Director of Market Analysis.
The current status of the condominium market highlights TREB’s calls for governments to take steps to facilitate greater housing options, especially the “missing middle” which is the gap between low-rise low density and high-rise high density housing.
For many people, condominiums are the only realistic housing option, even if they may prefer a different lifestyle. There is simply not enough supply of housing to meet the need for home types between detached homes and condominium apartments. This could help provide affordable options for home buyers and TREB looks forward to raising this issue during the upcoming municipal election campaign in our determination to find ways to get more of this type of housing into the market.