Condo Market Conditions Tighten in Q2 2016
July 21, 2016 -- Toronto Real Estate Board President Larry Cerqua announced another very strong quarter for condominium apartment sales in Q2 2016. Greater Toronto Area REALTORS® reported 8,965 condo apartment sales between the beginning of April and end of June. This result represented an increase of 17.4 per cent in comparison to the same period in 2015.
"TREB REALTOR® Members are involved in all aspects of the condominium apartment market in the Greater Toronto Area, from working with buyers at the pre-construction stage of development through to the resale or rental of existing units. While we have certainly seen a lot of condo construction over the last few years, project completions have not resulted in a glut of inventory. Over the past year, we have actually experienced tighter market conditions and accelerating annual rates of price growth," said Mr. Cerqua.
The average selling price of a condominium apartment in Q2 2016 was $415,326 – up 7.1 per cent compared to Q2 2015. The MLS® Home Price Index apartment benchmark price was up by a similar 7.9 per cent at the end of June.
"Similar to the low-rise market segments, we have seen growth in condo sales outstrip growth in condo listings this year. Seller's market conditions exist for condominium apartments in many parts of the GTA including Toronto's downtown core. This is why we are seeing average price growth well-above the rate of inflation," said Jason Mercer, TREB's Director of Market Analysis.