And it’s leading to supply issues, according to the city’s real estate board
Toronto’s condo market saw exponential price increases in 2016, according to the Toronto Real Estate Board.
The average Toronto condo sold for $437,281 in the fourth quarter of last year, up from 2015’s average of $381,981.
Inventory issues that have long plagued the single-family home market in the city are now being seen in the condo sector, according to TREB.
Double-digit annual sales increase, coupled with double-digit decline in new listings has resulted in supply concerns.
“Gone are the days when we were concerned about a potential glut in inventory in the condominium apartment market,” Toronto Real Estate Board President Larry Cerqua said. “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.”
Total sales in Q4 2016 were 6,831, up from 5,587 during the same period a year prior.
“First-time buyers represent an important component of home ownership demand. Many households looking to purchase their first home will consider a condominium apartment,” Jason Mercer, TREB’s director of market analysis, said. “Interest in this market segment has continued to grow as prices for low-rise home types have increased on a sustained basis.”
TREB’s report follows a similar one from CMHC that found Toronto’s hot single-family market is spilling over to surrounding areas as well as its own condo sector.
The average Toronto condo sold for $437,281 in the fourth quarter of last year, up from 2015’s average of $381,981.
Inventory issues that have long plagued the single-family home market in the city are now being seen in the condo sector, according to TREB.
Double-digit annual sales increase, coupled with double-digit decline in new listings has resulted in supply concerns.
“Gone are the days when we were concerned about a potential glut in inventory in the condominium apartment market,” Toronto Real Estate Board President Larry Cerqua said. “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.”
Total sales in Q4 2016 were 6,831, up from 5,587 during the same period a year prior.
“First-time buyers represent an important component of home ownership demand. Many households looking to purchase their first home will consider a condominium apartment,” Jason Mercer, TREB’s director of market analysis, said. “Interest in this market segment has continued to grow as prices for low-rise home types have increased on a sustained basis.”
TREB’s report follows a similar one from CMHC that found Toronto’s hot single-family market is spilling over to surrounding areas as well as its own condo sector.