The Toronto Real Estate Board (TREB) is reporting continued seller's market conditions in Toronto, with the average condominium selling price jumping 9% year-over-year to $533,447 in the first quarter of 2018. These price increases are accompanied by annual declines in sales, falling 29.7% to 5,084, and listings, down by 11.1% to 8,030.
“Seller’s market conditions for condominium apartments remained firmly in place in the first quarter of 2018. Strong competition between buyers underpinned price growth well above the rate of inflation. We expect the condo market segment to remain strong through the remainder of 2018 and over the longer term, as buyers continue to see ownership housing as a quality long-term investment,” reads a statement issued by TREB President Tim Syrianos.
Figures show that supply conditions are improving from the record lows witnessed last year, though conditions remain tight with no more than 2 months of inventory currently listed. “The condominium apartment market segment continues to have the lowest price point on average compared to other major low-rise home types" said TREB Director of Market Analysis Jason Mercer in a statement issued earlier today. "It stands to reason that condos remain popular with first-time buyers. Strong demand relative to supply will see this segment perform well from a pricing standpoint for the remainder of 2018 and beyond.”
Meanwhile, the condominium rental market is showing continued signs of strength. The latest report shows quick first quarter gains in average rents for one-bedroom and two-bedroom condominium apartment rental units. The average one-bedroom rent rose by 11.4% year-over-year to $1,995, while two-bedroom rents climbed 9.1% to $2,653.
These increases can at least be partially attributed to tighter supply conditions, with a vacancy rate for condo units in the vicinity of 1%. In the first quarter of 2018, the number of rental condo units listed was down 11.8% over Q1 2017, while the total number of units leased declined by 7.5%.
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