That stats are in! During the 4th Quarter of 2016, Condo sales were up by 22.3% year over year. New listings during the same time frame were down by 13.4%. Average prices during this time frame increased by almost 15% year over year.
By now, you know how it works right? When listings are down, prices go up. This has been the case in the low rise housing market and it’s been increasingly difficult for first time buyers to buy a townhouse/detached or semi-detached home. Issues of affordability have certainly been challenged.
Rather than get priced right out of the city, people are increasingly seeing the benefits of condominium ownership as a way to own a home rather than continue to pay high (and going higher) rents for who knows how long.
As a result, market conditions for condominiums have become very tight over the past year. Whereas in the past, there had been a concern of an oversupply of condos (at least according to the media) builders are struggling to keep up with the demand and the resale market is booming.
Another interesting stat is the strength of the luxury condo market as a result of the escalation of house prices. There was a 51% increase in sales of condos in the $1-million plus category in 2016 as compared to 2015 and a 55% increase in sales in the $1-million to $2-million range.
Now that the baby boomers are entering retirement territory they’re selling their large suburban homes and moving into the city. Nothing compares to the exciting urban lifestyle Toronto has to offer. We’re even seeing larger family sized units being built specifically for professionals and families who prefer to live in the city rather than move out to the 905 and beyond just to have a bit more “house”.
Strong condo market conditions are expected to continue through 2017. Condo buyers are experiencing multiple offer scenarios and are realizing that they can’t afford a “you snooze, you lose” attitude. It’s all about being ready to jump on the right one before someone else does.