GTA condo sales and prices surge in the third quarter
GTA condo sales and prices both surged in the third quarter of 2019, according to the latest figures from the Toronto Real Estate Board (TREB). There were 6,407 condominium unit sales in the third quarter, up 11.1 per cent compared to Q3 2018, while average prices rose 5.8 per cent to $584,564.
“As economic conditions continue to be favourable for job growth in the Greater Toronto Area, people have continued to come to the city for work,” says TREB President Michael Collins. “Homeownership is important to many Canadians, and, as a relatively affordable housing option, condos in the GTA offer prospective buyers the chance to achieve their dreams of owning property.”
Year-over-year price growth in Toronto, which accounted for nearly 70 per cent of transactions, was slightly lower at 5.6 per cent, with an average price of $628,074.
Strong price growth above the rate of inflation was driven by tightening market conditions, with sales up and listings down relative to last year. One factor underpinning the dip in listings may be the fact that, according to CMHC data, new condominium apartment completions were down year-to-date through August relative to the same time frame in 2018. This may have translated into fewer investor-owned units being listed for sale in Q3 2019 compared to Q3 2018, TREB says.
“Condominium apartments are obviously a popular choice amongst first-time home-buyers,” says Jason Mercer, TREB’s chief market analyst. “Moreover, it is also important to remember that condominium apartments owned by investors represent a huge component of the GTA rental stock and certainly account for most additions to the rental stock, on net, over the past decade. With this in mind, a well-supplied condo segment will be important moving forward to ensure that we can keep up with population growth driven by a strong and diverse regional economy.”