Monday, May 15, 2017

■Condo & Rental Market Report | Q1 2017

Condo Market Conditions Tightened Further in Q1

April 25, 2017 -- Toronto Real Estate Board President Larry Cerqua announced that Greater Toronto Area REALTORS® reported a double-digit annual increase in condominium apartment sales in the first quarter of 2017. A total of 7,251 condominium apartments changed hands through TREB's MLS® System during the first three months of 2017 – up 21.7 per cent compared to the same period in 2016.

Over the same period of time, the number of new condominium apartment listings entered into the MLS® System was down by 18.8 per cent to 9,036 compared to 11,123 new listings a year earlier.

"Condominium apartments have historically been the housing type of choice for many first-time buyers due to the relatively lower price point compared to groundoriented housing options. Given that more than half of intending home buyers are expected to be first-time buyers in 2017, according to a recent Ipsos poll conducted for TREB, it makes sense that demand for this housing type has remained strong," said Mr. Cerqua.

The average selling price for condominium apartments in the first quarter of 2017 was $489,551 – up 24.3 per cent compared to an average of $393,858 for the first quarter of 2016. The average price was highest in the City of Toronto, at $521,842, representing a year-over-year increase of 24.3 per cent.

"Market conditions became much tighter in the condominium apartment segment over the past year, with sales accounting for a greater share of listings. As competition between buyers increased further, the pace of price growth accelerated," said Jason Mercer, TREB's Director of Market Analysis.


Tight Rental Market Conditions Continue in Q1

TORONTO, ONTARIO, April 25, 2017 – Toronto Real Estate Board President Larry Cerqua announced that Greater Toronto Area REALTORS® reported 6,680 condominium apartment lease transactions through TREB’s MLS® System during the first quarter of 2017. This result was up by 3.5 per cent compared to the first quarter of 2016.

The number of condominium apartments listed for rent at some point during the first quarter was up on a year-over-year basis, but by less than one per cent.

“As the population and, by extension, number of households continues to grow in the Greater Toronto Area, the demand for housing increases. Some of this demand is pointed at the rental market, including condominium apartments that owners have chosen to rent out to tenants. The problem is that the supply of units available for rent has not kept up with demand, leading to more competition between renters and strong upward pressure on average rents,” said Mr. Cerqua.

The average one-bedroom condominium apartment rent for the TREB market area as a whole was up by 7.8 per cent to $1,791. The average two-bedroom rent was up by 6.8 per cent to $2,432.

“It is important to remember that the rental market meets the housing needs for a substantial number of GTA residents, including newcomers to Canada who choose to settle in the region. As a result, the rental market often falls under the public policy lens. Policies pointed at the rental market should be based on solid empirical evidence and should not hamper the supply of rental listings, which has been the main issue impacting renters over the last year,” said Jason Mercer, TREB’s Director of Market Analysis.

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