Condo Resale Prices on the Rise in Toronto

All these cranes in downtown Toronto, so many condos being built… This can't end well, there is way too much supply. Who is going to buy all those condos?!

Apparently, it is not as bad as we think. Resale prices for condos in the GTA are actually going up, not down. Who would have thought that!

4,586 condominium apartments changed hands through the TorontoMLS system in the fourth quarter of 2013. Up by 21 % in comparison to Q4 2012 with 3,789 transactions. 

The average selling price for condo apartments in the fourth quarter was $353,665 – up 6.5 % compared to Q4 2012. In the City of Toronto, where condo apartments account for approximately half of sales, the average selling price was up by 8.3 % to $381,008.

"If market conditions in 2014 remain similar to what we experienced in the last six months of 2013, we will continue to experience year-over-year average price growth for condominium apartments above the rate of inflation. However, there was an increase in condo completions last year. The degree to which investors list their newly completed units for sale and the degree to which these units are absorbed will play a large role in dictating the pace of price growth," said Jason Mercer, TREB's Senior Manager of Market Analysis. 

Urs Villiger, Real Estate Agent Bloor West Toronto

How do Real Estate Prices Change Throughout the Year?

Home prices fluctuate over the course of the year. Traditionally, highest prices have been achieved in spring, with lowest average prices recorded in part of the summer and in the winter months. 2012 was a very typical example of consumer behaviour in this respect, as can be seen in the table to the left.

May 2012 shows an average price that is almost 4% higher than the yearly average, while January is the lowest with close to 7% lower prices.

2013 paints a much more diverse picture. Even though the price level was still the highest in May, Oct and Nov followed closely. Dec is only slightly below average. Not exactly a typical year, but the high prices late in the year indicate what may be in store for 2014. 

The beginning of this year will most likely be characterised by further price growth. Especially if the low inventory levels remain common place. They certainly dominated much of the second part of last year. 

Urs Villiger, real estate sales representative, Toronto

Toronto Real Estate Price Growth Predicted for 2014

Residential real estate sales in the Greater Toronto Area are recorded at 87,111 for 2013, up by approximately 2% compared to 85,496 transactions in calendar year 2012.

“After a slow start to the year, sales growth accelerated to a brisk pace in the second half of 2013. Despite the inclement weather in December, we finished the year with a respectable gain in transactions compared to 2012. Looking forward, I believe that home ownership in the GTA will remain affordable as borrowing costs stay low. The result could be a further increase in sales in 2014,” said Toronto Real Estate Board President Dianne Usher.

“The average selling price will be up again in 2014 and by more than the rate of inflation. The seller’s market conditions that drove price growth in the second half of 2013 will remain in place in many parts of the GTA. Some neighbourhoods, especially those characterized by low-rise home types like singles, semis and townhomes, will continue to have less than two months of inventory,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.

The average selling price for 2013 as a whole was $523,036, which represented an increase of 5.2% compared to the calendar year 2012 average of $497,130.

December numbers were as follows: 4,078 transactions in Dec 2013 – up by almost 14% compared to Dec 2012. New listings were down by almost 4% over the same period. The average selling price went up by 8.9% to $520,398 in Dec 2013.

GTA Real Estate Agent