Condo prices this June continue to show the fastest growth among all market segments, according to the Toronto Real Estate Board (TREB).
Condos across the Greater Toronto Area were up 7.9 per cent year-over-year to $561,100: 3.4 per cent in the 905 to $450,680 and an astonishing 9.5 per cent in the 416 to $605,530.
“Home ownership has proven to be a positive long-term investment,” says Garry Bhaura, the new president of TREB.
So far in 2018, condos have been the sole property type to show price growth — detached, semi-detached and townhouses were all lower in price this year to date.
But the busy summer month has shored up prices across the board. Detached houses for sale are fairly stable at a decline of just 1.9 per cent in the Greater Toronto, but still go for over $1 million, and so are semi-detached homes for sale with 1.7 growth. Meanwhile, townhouses are up 3.3 per cent.
Condos are lasting a bit longer on the market, but just barely: 17 days this June to last year’s 15 days.
It therefore looks like the market has largely recovered from last year’s whack of legislation, including the Ontario Fair Housing Plan and the new tighter mortgage rules. Some long-term shifts we may be seeing still from that however are the strong price growth among the least expensive market segments: condos and townhouses. Borrowers may be finding it difficult to find lenders, and with reduced affordability are looking at condos instead of other forms of housing.
The increase in demand for these units, along with a serious undersupply of all forms of housing, is likely pushing up the price. TREB expects prices to rise as we continue into the last two quarters of 2018.
“The expectation is to see improvement in sales over the next year. Over the same period, however, it is likely that issues surrounding the supply of listings will persist. This suggests that competition between buyers could increase, exerting increased upward pressure on home price,” says Jason Mercer, director of market analysis for TREB.
This post was created in partnership with Zoocasa.com, a leading real estate resource that combines online search tools and a full-service brokerage to empower Canadians to buy or sell their homes faster, easier and more successfully. Home buyers can browse real estate listings on the website or the free iOS app.