October 23, 2017 -- Toronto Real Estate Board President Tim Syrianos reported continued average price growth on a year-over-year basis for condominium apartments listed and sold through TREB's MLS® System by Greater Toronto Area REALTORS®. The average selling price was $510,206 in Q3 2017 – up by 22.7 per cent compared to the average of $415,894 reported in Q3 2016.
"The condominium apartment market segment has exhibited the strongest average rates of price growth since the spring, relative to other major market segments. Competition between buyers remains strong, as listings remain below last year's very constrained levels. Over the past few months, TREB has participated in discussions at various levels of government pointed at developing solutions for the housing supply issue in the GTA. As these discussions continue, it will be important to remember that the condominium apartment market is not immune to a listings shortage," said Mr. Syrianos.
"TREB will also be paying close attention to the potential impacts of the new OSFI Guideline B- 20 concerning new mortgage rules and underwriting standards, and the possibility of a vacancy tax in the City of Toronto. We will be asking consumers about their opinion on these initiatives, from the prospective of buying and selling intentions, during our fall polling cycle," continued Mr. Syrianos.
There were 5,684 condominium apartment sales reported through TREB's MLS® System in the third quarter of 2017. This result was down from 7,991 sales reported during the same period in 2016.
New condominium apartment listings were also down on a year-over-year basis by 10 per cent to 9,845 in Q3 2017 compared to 10,967 in Q2 2016.
"Condominium apartments will likely account for a greater share of home sales as we move forward. Consumer polling undertaken for TREB by Ipsos in the spring pointed to increased buying intentions for condominium apartments. With this in mind, it is not surprising that we have continued to see robust price growth, as demand has remained strong relative to available listings," said Jason Mercer, TREB's Director of Market Analysis.
Competition Between Renters Remains Strong in Q3
TORONTO, ONTARIO, October 23,
2017 – Toronto Real Estate Board President Tim Syrianos announced that
year-over-year increases in average rents for condominium apartments were up
very strongly in the third quarter, based on rental transactions reported by
Greater Toronto REALTORS® through TREB’s MLS® System.
The average rent for one-bedroom condominium apartments in the TREB market area was up by 11.2 per cent on an annual basis to $1,976 in Q3 2017. The average two-bedroom condominium apartment rent was up by 7.7 per cent over the same period to $2,607.
The average rent for one-bedroom condominium apartments in the TREB market area was up by 11.2 per cent on an annual basis to $1,976 in Q3 2017. The average two-bedroom condominium apartment rent was up by 7.7 per cent over the same period to $2,607.
“Competition between renters
remained very strong for available units in Q3. It is clear that supply is part
of the issue. Different levels of government have committed to looking at
housing supply through the policy lens. TREB has participated in these policy
discussions and looks forward to continuing the dialogue. To this end, TREB
does have concerns that increased rent controls and a possible vacancy tax in
the City of Toronto could serve to reduce the supply of available rental units
as potential investors look to less-regulated sectors in which to invest,” said
Mr. Syrianos.
The number of condominium apartments listed during the third quarter and the number of rental agreements signed were down by similar amounts on a year-over-year basis.
“It is reasonable to assume that the vacancy rate for condominium apartments has trended lower this year. If the current relationship between rental demand and supply remains in place moving forward, rent increases for available units will continue to trend well-above the rate of inflation. Economic and demographic trends suggest that rental demand will increase and there are real concerns that the already constrained supply of units for rent could get worse,” said Jason Mercer, TREB’s Director of Market Analysis.
The number of condominium apartments listed during the third quarter and the number of rental agreements signed were down by similar amounts on a year-over-year basis.
“It is reasonable to assume that the vacancy rate for condominium apartments has trended lower this year. If the current relationship between rental demand and supply remains in place moving forward, rent increases for available units will continue to trend well-above the rate of inflation. Economic and demographic trends suggest that rental demand will increase and there are real concerns that the already constrained supply of units for rent could get worse,” said Jason Mercer, TREB’s Director of Market Analysis.
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