Greater Toronto Area (GTA) Realtors recently released its fourth quarter condo market report, recording 3,830 condominium apartment sales through the Toronto MLS system during the fourth quarter of 2012. The number represented a decline of 23 per cent compared to the same period in 2011, which saw 5,005 sales.

The average selling price for condo apartments in the fourth quarter of 2012 was $332,410, down by one per cent from the same period of 2011.

“The condominium apartment market was the best supplied market segment in 2012,” says Toronto Real Estate Board (TREB) president, Ann Hannah. “Strong condo apartment completions in 2011, and the first few months of 2012, resulted in a substantial number of new listings in the Toronto MLS system last year. With more units for buyers to choose from, the annual rate of price growth moderated.”

Transactions rose by roughly 13 per cent year-over-year in the fourth quarter, while the number of units listed for rent increased by more than 17 per cent. Average rents were up on a year-over-year basis for one-bedroom and two-bedroom apartments.

“While some first-time buyers put their decision to purchase on hold in the fourth quarter, many of these people chose to rent a condominium apartment instead,” says Jason Mercer, TREB’s senior manager of market analysis. “Similar to the ownership market, strong new condo completions prompted a considerable increase in the number of investor-held units offered for rent. However, there was still enough competition between renters to prompt upward pressure on average rents.”