The Toronto Real Estate Board released its third quarter 2018 results for the Greater Toronto Area’s condo market, reporting tighter conditions.
In the third quarter, there were 5,781 condo sales reported through the MLS system, which is 2% higher than the same quarter last year. It’s not surprising that 4,076 of these sales were in the City of Toronto. While sales increased, new listings fell 2.1%, which means supply dropped, leading to higher prices.
“Condominium apartments represent a relatively affordable homeownership option in the Greater Toronto Area, particularly for first-time buyers,” says TREB President Garry Bhaura. “Looking forward, strong demand for condo apartments should continue as people move to the GTA to take advantage of quality job opportunities, including those jobs associated with recent investment announcements from well-known tech companies.”
The average selling price of a condo unit in the GTA last quarter was $552,269, which is 8.4% higher than the third quarter of 2017. The highest average selling price was in Toronto, jumping 9.7% year-over-year to $594,039.
“Recent survey results from Ipsos revealed that the vast majority of young people in the GTA are concerned about homeownership,” says Jason Mercer, TREB’s Director of Market Analysis. “Nearly 92% of respondents agreed that the goal of homeownership is becoming more difficult for younger people in the city. With these insights in mind, it makes sense that relatively more affordable homeownership alternatives like condo apartments have been very popular with homebuyers over the past year.”
The lowest average selling price was in Durham Region, where there were 123 sales (also the lowest) and the average condo sold for $395,558.
We’ll have to wait a few more days for the monthly resale report to come out for October to see if the fourth quarter is off to a good start. Home sales typically slow down in November and December, but you never know what’s going to happen in Toronto real estate.