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GTA condo sales fell 9.9 per cent in Q4-2018

Wednesday, January 30, 2019

According to the Toronto Real Estate Board (TREB), there were 5,191 condominium apartment sales in the fourth quarter of 2018, a decline of 9.9 per cent compared to Q4-2017.

New listings for condominium apartments fell further than sales on an annual basis, dipping 11.2 per cent from 8,186 in Q4-2017 to 7,272 in Q4-2018. This indicates that market conditions were tighter by year-end in 2018, compared to the end of 2017.

“The condominium apartment segment was the best-performing segment in terms of annual average rates of price growth in 2018,” said Garry Bhaura, TREB president, in a press release. “Condos represent a relatively affordable housing option. With a substantial decrease in listings in 2018, competition between intending buyers remained strong. This supported average price growth well-above the rate of inflation and annual rates of price growth reported for other ground-oriented home types.”

The average price of a condominium apartment rose 8.3 per cent from $516,086 in Q4-2017 to $558,728 in Q4-2018. Annual price growth in the City of Toronto, which accounted for 72 per cent of condo sales in this quarter, sat at 8.9 per cent, resulting in an average price of $598,664.

“The condominium apartment segment continued to be a key entry point into the GTA home ownership market in 2018,” added Jason Mercer, TREB’s director of market analysis. “Higher mortgage qualification standards meant that many first-time buyers were looking for more affordable housing options. Moving forward, the concern is that a continued lack of listings supply, despite relatively strong new condo completions as of late, will hamper the ability of potential home buyers to meet their housing needs.”

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