Seller's Market Conditions Continue in Q4 2017
January
22, 2018 -- Toronto Real Estate Board President Tim Syrianos announced
that Greater Toronto Area REALTORS® reported 5,773 condominium apartment sales
through TREB's MLS® System in the fourth quarter of 2017. This result was down
by 15.4 per cent compared to the last three months of 2016.
Over the same period, new
condominium apartment listings were up by 9.8 per cent to 8,186. While sales
were down relative to listings, market conditions still remained tight, with a
sales-to-new listings ratio of 70 per cent.
"Demand for
condominium apartments remained strong relative to listings in the fourth
quarter. Even with the uptick in listings, which was certainly welcome, there
was enough competition between buyers to prompt double-digit annual rates of
price growth. This points to the fact that we still do have a supply problem in
the GTA that needs to be addressed to ensure the long term sustainability of
the marketplace," said Mr. Syrianos.
The average selling price for condominium apartments was up by 17.9 per cent year-over- year in the fourth quarter to $515,816. While this annual rate of growth was down from earlier in 2017, the condominium apartment segment was still the leader in terms of price growth in the second half of the year.
"Seller's market conditions remained in place for the condominium apartment market segment in the fourth quarter. Based on price point, this housing type remains top of mind for many first-time buyers. In addition, as home prices have grown year-over-year some buyers who initially may have considered the purchase of a low-rise home have chosen to purchase a condo apartment as well," said Jason Mercer, TREB's Director of Market Analysis.
January 22, 2018 – Toronto Real Estate Board President Tim Syrianos announced that average rents for one-bedroom and two-bedroom condominium apartment rents were up very strongly on a year-over-year basis in the fourth quarter of 2017, based on transactions reported by Greater Toronto REALTORS® through TREB’s MLS® System.
“As the population in the GTA continues to grow, so too does the demand for rental accommodation. The problem is that rental supply has not kept up with the increase in demand in recent years. The result has been low vacancy rates and intense competition between renters for available units. This competition has underpinned very strong growth in average rents,” said Mr. Syrianos. The number of condominium apartments listed during the fourth quarter was down by 3.4 per cent compared to Q4 2016.
The number of units leased was down by 0.7 per cent. Because the vacancy rate was less than one per cent for condominium apartments in the fall of 2017, a dip in the number of apartments listed for rent translated through into a dip in the number of lease agreements signed.
The average selling price for condominium apartments was up by 17.9 per cent year-over- year in the fourth quarter to $515,816. While this annual rate of growth was down from earlier in 2017, the condominium apartment segment was still the leader in terms of price growth in the second half of the year.
"Seller's market conditions remained in place for the condominium apartment market segment in the fourth quarter. Based on price point, this housing type remains top of mind for many first-time buyers. In addition, as home prices have grown year-over-year some buyers who initially may have considered the purchase of a low-rise home have chosen to purchase a condo apartment as well," said Jason Mercer, TREB's Director of Market Analysis.
Strong Average Rent Growth Continued in Q4
2017
January 22, 2018 – Toronto Real Estate Board President Tim Syrianos announced that average rents for one-bedroom and two-bedroom condominium apartment rents were up very strongly on a year-over-year basis in the fourth quarter of 2017, based on 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 10.9 per
cent on an annual basis to $1,970 in Q4 2017. The average two-bedroom
condominium apartment rent was up by 8.8 per cent over the same period to $2,627.
“As the population in the GTA continues to grow, so too does the demand for rental accommodation. The problem is that rental supply has not kept up with the increase in demand in recent years. The result has been low vacancy rates and intense competition between renters for available units. This competition has underpinned very strong growth in average rents,” said Mr. Syrianos. The number of condominium apartments listed during the fourth quarter was down by 3.4 per cent compared to Q4 2016.
The number of units leased was down by 0.7 per cent. Because the vacancy rate was less than one per cent for condominium apartments in the fall of 2017, a dip in the number of apartments listed for rent translated through into a dip in the number of lease agreements signed.
“Looking forward, we continue
to have concerns that rent control legislation announced in conjunction with
the Ontario Fair Housing Plan will preclude additional rental supply coming on
stream, both in the purpose-built and investor-held condominium apartment
segments. Going further, it is possible that current owners of condominium
apartments could choose to list their units for sale to take advantage of
recent price gains rather than rent their units to tenants under the new rent
control regime,” said Jason Mercer, TREB’s Director of Market Analysis.
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