The Toronto Real Estate Board reported 4,731 condo and loft sales in the first quarter of 2019. This result was down by 6.8% compared to Q1 of 2018.
New Toronto condo and loft listings were up by 2.4% compared to Q1 2018, with 8,222 listings being added in 2019 versus 8,029 listings added in the first three months of 2018.
While we experienced a slightly better-supplied condo and loft market in the first quarter of 2019, the market segment remained tight enough to retain the highest year-over-year rate of price growth compared to other major home types. Condos and lofts continue to provide prospective buyers with a relatively affordable housing option in Toronto, especially given the impact of the OSFI-mandated mortgage stress test.
The average price of a condo or loft increased by 4.5% from $533,520 in Q1 2018 to $557,377 in Q1 2019. Year-over-year price growth in the City of Toronto, which accounted for 69% of transactions, was slightly higher at 5.4% resulting in an average price of $603,243.
Condo and soft loft listings, in both the ownership and rental markets, can be influenced by the completion of new condo and soft loft projects. According to CMHC, new condo and soft loft completions were up substantially year-over-year in the fourth quarter of 2018, which could account for an uptick in condo and loft ownership in Q1 2019. Conversely, condo and soft loft . completions were down year-over-year in Q1 2019, which could arguably impact listings in the opposite manner over the next three months.
The condo and loft rental market remained very tight through the first three months of 2019. Average one-bedroom and two-bedroom rents were up well-above the rate of inflation on a year-over-year basis in the first quarter. However, the condo and loft rental market also benefitted from an increase in the number of units listed, resulting in more choice for prospective renters. With this said, we would need to see a number of quarters with listings growth outstripping rental transaction growth in order for the market to become more balanced.
If you want to buy or sell a Toronto condo or loft, contact Casey Ragan at 416-486-5588 or by email at firstname.lastname@example.org
“Toronto’s Condo Authority”