The average selling price for condominium apartments sold through TREB’s MLS System in Q1-2018 was up by nine per cent year-over-year to $533,447, according to the Toronto Real Estate Board (TREB).
The number of condominium apartment sales in the first quarter of this year was down by 29.7 per cent year-over-year to 5,084. The number of new listings also declined by 11.1 per cent year-over-year to 8,030, keeping seller’s market conditions for condominium apartments firmly in place.
“Strong competition between buyers underpinned price growth well above the rate of inflation. We expect the condo market segment to remain strong through the remainder of 2018 and over the longer term, as buyers continue to see ownership housing as a quality long-term investment,” said Tim Syrianos, TREB president, in a press release.
Inventory levels for condominium apartments in the first quarter of 2018 were higher than the record lows experienced during Q1-2017. However, with months of inventory continuing to trend between 1.5 and 2.0 months, market conditions remain tight from a historic perspective.
“The condominium apartment market segment continues to have the lowest price point on average compared to other major low-rise home types. It stands to reason that condos remain popular with first-time buyers,” added Jason Mercer, TREB’s director of market analysis. “Strong demand relative to supply will see this segment perform well from a pricing standpoint for the remainder of 2018 and beyond.”
Due to the impending legalization of marijuana in Ontario, the TREB is cautioning home buyers on purchasing a home that was one used as a marijuana grow operation, which can contribute to the presence of mold and fungus in a home, potentially posing significant health and safety issues for unsuspecting home buyers. There are currently no rules in place to protect a home buyer from purchasing a former grow-op.
“The Provincial Government needs to act now to bring forward measures that will ensure home buyers are protected from the health and safety risks associated with former grow-ops. Policy makers must take action to protect Greater Toronto Area home owners and address the long-term impact of legal marijuana cultivation on the housing stock,” added Syrianos. “We are calling for measures to require inspection by municipal building officials; registration of remediation work orders on property title; mandate home inspectors to receive training on spotting former grow operations; and restrict the number of plants that a home owner can grow from four to one in units 1,000 square feet or smaller to protect multi-unit dwellings such as condos and apartments. Visit protectontariohomes.ca launched by the Ontario Real Estate Association for more information on cannabis legalization and to take action.”