Moderate year-over-year price increases, record square footage cost for pre-con condos.
4,009 home sales were reported through the Toronto Real Estate Board MLS in January 2019, up by 0.6 per cent compared to January 2018. The average selling price was up by 1.7 percent for the month year-over-year. The first month of this year continues to show the condo market segment leading the way in terms of price growth. This segment is one to watch closely, as data released on February 1, 2019 by Urbanation Inc., which tracks data in the preconstruction condo market in the GTA, indicate that prices of prebuild condo units rose 16 percent in 2018 to a record of $921 a square foot in the GTA overall, and $1,117 a square foot in central Toronto. Over the past two years, new construction condos prices have climbed by 56 per cent in the GTA, far outpacing price increases for resale condos.
2018 price growth strongest for less expensive home types
A total of 77,426 residential transactions flowed through the TREB MLS in 2018 with an overall average selling price of $787,300 for all home types combined in the TREB market area that includes both the 416 and 905 areas. These numbers compared to 2017 translate into declines of 16.1 percent in sales and 4.3 percent in price. Despite overall declines, the condo market segment in both the 416 and 905 bucked the trend with average sales up by 7.8 percent and average prices up by just over 8 percent year over year. The volume of sales and positive price increases of this home type reflects a move of GTA home buyers in 2018 to more affordable homeownership options.
GTA REALTORS® Release January Stats
February 6, 2019 — TREB President Garry Bhaura announced that Greater Toronto Area REALTORS® reported 4,009 home sales through TREB’s MLS® in January 2019 – up by 0.6 percent compared to January 2018. On a preliminary seasonally adjusted basis, sales were up by 3.4 percent compared to December 2018.
“It is encouraging to see the slight increase in January transactions on a year-over-year basis, even with the inclement weather experienced in the GTA region during the last week of the month. The fact that the number of transactions edged upwards is in line with TREB’s forecast for higher sales in the calendar year 2019,” said Mr. Bhaura.
The MLS® HPI Composite Benchmark price was up by 2.7 percent compared to January 2018. The condominium apartment market segment continued to lead the way in terms of price growth. The average selling price was up by 1.7 percent on a year-over-year basis. After preliminary seasonal adjustment, the average selling price edged lower compared to December 2018.
“Market conditions in January, as represented by the relationship between sales and listings, continued to support moderate year-over-year price increases, regardless of the price measure considered. Given housing affordability concerns in the GTA, especially as it relates to mortgage qualification standards, we have seen tighter market conditions and stronger price growth associated with higher density low-rise home types and condominium apartments, which have lower average selling prices compared to single detached homes,” said Jason Mercer, TREB’s Director of Market Analysis and Service Channels.
Click here to download full report – Market Watch – January 2019
TREB Q4 2018 Condo Market Statistics
TORONTO, January 28, 2019 – Toronto Real Estate Board President Garry Bhaura
announced that Greater Toronto Area REALTORS® reported 5,191 condominium
apartment sales through TREB’s MLS® System in the fourth quarter of 2018. This result
was down by 9.9 percent compared to the last three months of 2017.
New condominium apartment listings entered into TREB’s MLS® System were down by
more than sales on a year-over-year basis – dropping 11.2 percent from 8,186 in Q4
2017 to 7,272 in Q4 2018. This points to tighter market conditions at the end of 2018
compared to year-end 2017.
“The condominium apartment segment was the best-performing segment in terms of
annual average rates of price growth in 2018. Condos represent a relatively affordable
housing option. With a substantial decrease in listings in 2018, competition between
intending buyers remained strong. This supported average price growth well above the
rate of inflation and annual rates of price growth reported for other ground-oriented
home types” said Mr. Bhaura.
The average price of a condominium apartment increased by 8.3 per cent from
$516,086 in Q4 2017 to $558,728 in Q4 2018. Year-over-year price growth in the City of
Toronto, which accounted for 72 percent of transactions, was slightly higher at 8.9 per
cent resulting in an average price of $598,664.
“The condominium apartment segment continued to be a key entry point into the GTA
homeownership market in 2018. Higher mortgage qualification standards meant that
many first-time buyers were looking for more affordable housing options. Moving
forward, the concern is that a continued lack of listings supply, despite relatively strong
new condo completions as of late, will hamper the ability of potential homebuyers to
meet their housing needs,” said Jason Mercer, TREB’s Director of Market Analysis
TREB Releases Q4 2018 Condo Rental Market Stats
TORONTO, January 28, 2019 – Toronto Real Estate Board President Garry Bhaura announced that,
based on rental listings and transactions reported by Greater Toronto REALTORS® through
TREB’s MLS® System, rental market conditions remained very tight in the fourth quarter of 2018.
Average rents for one-bedroom and two-bedroom condominium apartments were up substantially
on a year-over-year basis.
The average rent for one-bedroom condominium apartments in the TREB market area was up by
8.8 per cent annually to $2,143 in Q4 2018. The average two-bedroom condominium apartment
rent was up by 5.5 percent over the same period to $2,774.
“The Greater Toronto Area has seen significant growth in its economy throughout 2018. It has
become a primary destination for companies in various industries who are attracting younger
talent who have a desire to live in the region. This desirability has contributed to the continuation
of historically-low vacancy rates, strong competition between renters for available units and, as a
result, very strong growth in average rents,” said Mr. Bhaura.
The number of condominium apartments listed at some point during the fourth quarter was up
16.6 per cent compared to Q4 2017, outstripping the seven per cent annual growth in rental
transactions. While encouraging, a number of quarters within which listings growth outstrips
rental transaction growth will be required to see more balance in the rental market.
“It will be important to continue monitoring the supply of rental condominium apartments. While
TREB certainly supports the recent rent control exemptions announced by the provincial
government, this change does not benefit all investor-owners of condominium apartments, who
have provided much of the new rental stock over the past decade. It is conceivable that rent
controls could prompt some investors to consider selling their units and investing the proceeds in
another asset class. This scenario could obviously compound an already problematic rental
supply issue in the GTA,” said Jason Mercer, TREB’s Director of Market Analysis.
GTA REALTORS® December and 2018 Annual Statistics Released
January 4, 2019 — Toronto Real Estate Board President Garry Bhaura announced that Greater Toronto Area REALTORS® reported a total of 77,426 residential transactions through TREB’s MLS® System in 2018. This result represented a 16.1 percent decline compared to 92,263 sales reported in 2017. Total new listings entered into TREB’s MLS® System were down by 12.7 percent over the same period to 155,823.
The overall average selling price for 2018 transactions, at $787,300, was down by 4.3 percent year-over-year for all home types combined across the TREB market area.
Home prices were up very slightly in the City of Toronto and down in the surrounding GTA regions. This dichotomy reflects the fact that the condominium apartment segment, which accounted for a large proportion of sales in the City of Toronto, performed better from a pricing perspective than the detached market segment. The average price for condominium apartment sales across the TREB market area was up by 7.8 percent year-over-year.
“Higher borrowing costs coupled with the new mortgage stress test certainly prompted some households to temporarily move to the sidelines to reassess their housing options. With this said, it is important to note that market conditions were improved in the second
half of the year, both from a sales and pricing standpoint,” said Garry Bhaura.
“After spiking in 2017, new listings receded markedly in 2018. In many neighbourhoods, despite fewer sales from a historical perspective, some buyers still struggled to find a home meeting their needs. The result was a resumption of a moderate year-over-year pace of home price growth in the second half of the year. Price growth was strongest for less expensive home types, as many home buyers sought more affordable homeownership options,” said Jason Mercer, TREB’s Director of Market Analysis and Service Channels.
Click here to download full report – Market Watch – December 2018