There was a 9.8% year-over-year rise in new condo listings in the Greater Toronto Area in the fourth quarter of 2017 but the market remained relatively tight.
Condo sales were down 15.4% compared to Q4, 2016 with 5,773 units sold through the Toronto Real Estate Board’s MLS system. But with inventory of 8,186 the sales to new listings ratio was 70%.
“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 TREB president Tim Syrianos.
The tight supply added upward pressure to prices with condos selling for an average $515,816, up 17.9% from a year earlier.
“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.
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