Red-hot housing market encouraging buyers to purchase condos

Red-hot housing market encouraging buyers to purchase condos

Red-hot housing market encouraging buyers to purchase condos 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.