Toronto Real Estate Board President Michael Collins announced that Greater Toronto Area REALTORS reported a 3.2 per cent increase in Q2 of 2019, with 7,038 condominium apartment sales through TREB’s MLS System.
According to the report, new condominium apartment listings entered into TREB’s MLS System decreased by 3.5 per cent with 11,110 listings added in 2019 versus 11,512 listings added in 2018.
“As has generally been the case in the region since the implementation of the Ontario Government’s Fair Housing Plan in 2017, the condo market segment has remained tight in comparison to other major housing types. However, from a price point perspective, condo apartments continue to offer prospective buyers a relatively affordable housing option when looking across the GTA,” said Collins.
TREB states that the average price of a condominium apartment saw a 5.1 percent increase from $561,343 in Q2 2018 to $589,887 in Q2 2019.
Year-over-year price growth in the City of Toronto, which according to TREB accounted for almost 70 per cent of transactions, was slightly higher at 5.9 per cent, resulting in an average price of $639,316.
In comparison to the first half of 2018, condominium apartment completions reported by CMHC were down through the first six months of 2019 on a year-over-year basis.
Completions correlate to a certain degree with listings, as some investors choose to list their units for sale when title transfers to them from the builder, states the report.
TREB suggests that the downturn in completions possibly affected the year-over-year decline in new listings, and the decline in the active listings count at the end of Q2.
Jason Mercer, TREB’s Chief Market Analyst, says average rents for one-bedroom and two-bedroom apartments in the condominium apartment rental market increased above the rate of inflation on a year-over-year basis.
“However, we have seen an acceleration in the number of units listed for rent, which has provided renters with more choice in the market place and has coincided with a slower pace of average rent growth over the past year,” said Mercer.