The Toronto Real Estate Board reported 6,407 condo and loft sales in the third quarter of 2019. This result was up by 11.1% compared to Q3 2018.
New Toronto condo and loft listings were down by 1% compared to Q3 2018, with 9,538 listings added in 2019 compared to 9,636 listings added in 2018.
As economic conditions continue to be favourable for job growth in Toronto, people have continued to come to the city for work. Home ownership is important to many Torontonians, and, as a relatively affordable housing option, condos and lofts in Toronto offer prospective buyers the chance to achieve their dreams of owning property.
The average price of a condo or loft increased by 5.8% from $552,766 in Q3 2018 to $584,564 in Q3 2019. Year-over-year price growth in the City of Toronto, which accounted for nearly 70% of transactions, was slightly lower at 5.6%, resulting in an average price of $628,074.
Strong price growth above the rate of inflation was driven by tightening market conditions, with sales up and listings down relative to last year. One factor underpinning the dip in listings may be the fact that, according to CMHC data, new condominium apartment completions were down year-to-date through August relative to the same time frame in 2018. This may have translated into fewer investor-owned units being listed for sale in Q3 2019 compared to Q3 2018.
Condos and lofts are obviously a popular choice amongst first-time home-buyers. Moreover, it is also important to remember that condos and lofts owned by investors represent a huge component of the GTA rental stock and certainly account for most additions to the rental stock, on net, over the past decade. With this in mind, a well-supplied condo and loft segment will be important moving forward to ensure that we can keep up with population growth driven by a strong and diverse regional economy.
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”