25 Apr Toronto Condo Market Report – Update and Forecast 2017 2018
Toronto Condo Prices Could Rise Another 40%
While the Toronto housing market is overshadowed by severe house supply shortages, big demand, and soaring prices, the condo market in Toronto has been a little bit more subdued. That is until this spring where prices have risen.
This market’s going ⇑ Sales of new units have grown 32% and resale condos are up 21.7%. Resale condo prices rose 24.3% over last year same time. And with a looming shortage of condos, especially hood 2 bedroom condos in the most desirable neighbourhoods, it’s easy why experts say prices could rise 40%.
TORONTO, ONTARIO, April 25, 2017 – Toronto Real Estate Board President Larry Cerqua announced that Greater Toronto Area REALTORS® reported a double-digit annual increase in condominium apartment sales in the first quarter of 2017. A total of 7,251 condominium apartments changed hands through TREB’s MLS® System during the first three months of 2017 – up 21.7 per cent compared to the same period in 2016. Over the same period of time, the number of new condominium apartment listings entered into the MLS® System was down by 18.8 per cent to 9,036 compared to 11,123 new listings a year earlier — courtesy of Trembhome.
Toronto Condos offer higher cap rates and a larger growing pool of potential renters and buyers. And at this point with severe shortages of detached houses and townhouses, buyers are buying condos. Barry Fenton, President & CEO of Lanterra Developments, a major condo developer suggests Toronto Condo prices could rise 40%.
When foreign investors look to escape their own country’s currency nightmares and leverage our weak loonie, they like the Toronto market. Note: If you’re a foreign real estate investor, people often refer to Toronto as being the greater Toronto area encompassing Oakville, Mississauga, Vaughan, Richmond Hill, Scarborough, East York, Pickering and even out to Oshawa.
The Toronto Real Estate Board covers a huge area and below we’ll zero in on communities that may represent the best ones for you to research.
Barry Fenton, President & CEO at Lanterra Developments joins BNN to discuss the Toronto Condo market. He suggests the market is aggressively priced and complains a little about how competitive it is. He says prices will rise 40% but he a few misgivings about the market.
Big Demand for Condos as Entry Level Homes
Most home buyers in the Toronto area can only hope to own a condo. Homes are averaging over $1.5 million in some areas in the GTA. And condo developments are offering more for tenants. And perhaps the key feature of Toronto condos is their proximity to work, leisure, restaurants and shopping and freedom from the grinding commute that many Torontonians face each day. So there are good reasons to buy a condo in Toronto.
But the condo investment landscape has recently been darkened by Ontario premier Kathleen Wynne. Her government’s new foreign buyer tax might hit the condo market the hardest, but most credible experts expect demand to return. It’s a short term blip. Oddly, the condo market in Toronto is much less volatile than the single housing and townhouse market in Toronto. Her foreign buyer tax and rental price controls look like they’ll miss the mark.
For condo buyers, I would suggest investigating what the incoming Ontario government intends to do in 2018. That party will likely be the Conservative party which was booted out years ago. Strangely they’re coming right back in, because Ontarians don’t like the Liberal Party.
Lets’ take a look at the most recent Toronto condo market prices and then look onward to 2018, 2018, 2019 and 2020. This blurb from the latest TREB condo market report says it all about what’s happening right now in April of 2017:
Condo Market Conditions Tightened Further in Q1
TORONTO, ONTARIO, April 25, 2017 – Toronto Real Estate Board reported a double-digit annual increase in condominium apartment sales in the first quarter of 2017. A total of 7,251 condominium apartments changed hands through TREB’s MLS® System during the first three months of 2017 – up 21.7 %compared to the same period in 2016. … and the number of new condominium apartment listings entered into the MLS® System was down by 18.8% to 9,036 compared to 11,123 new listings a year earlier.
Demand for condos in the GTA this spring is up and prices have risen almost 22% compared to last year. Supporting economic fundamentals aren’t bad. Ontario’s economy is improving, inflation is at a healthy level, mortgage rates are low, and the employment picture is okay. In fact, unemployment could fall if Canada can’t protect its position in the NAFTA deal.
What else is supporting condo sales is proximity to work. Commute times are awful, gas prices are very high, and young millennials are having trouble handling rent/mortgage/ and car payments. Something has to give, so workers are choosing to move into the city near their jobs.
Where are Toronto’s Best Investment Condos?
As the graphic above shows, the top location is Toronto Central (where home prices are highest too), Toronto West and Mississauga. The bulk of these listings are in huge mega-sized condo towers and there are more of them being built.
Toronto’s C02 district is your million dollar listing area. With an average price of $1,050,000 these are your Toronto luxury condos. This area is located just north of Downtown/Bloor st, near the University of Toronto. This suggests that proximity to U of T and downtown offices may be the primer driver of Toronto condo prices and may drive sales of Toronto homes as well.
How Much Have Prices Risen in the Last 5 Years?
|Avg Condo Price March 2017||Avg Condo Price September 2016||Avg Condo Price March 2012|
|City of Toronto||$550,299||$561,376||$361,800|
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