Just as the inventory of low-rise homes increases, the number of condo apartments available is shrinking.
According to May results released by the Toronto Real Estate Board (TREB), both new and active listings have increased while sales of all home types are dropping. Overall, new listings rose by 48.9% and active listings increased by 42.9%, but the main beneficiaries of this listing increase were detached and semi-detached properties, and townhomes. As TREB says: “Active listings for condominium apartments were down compared to May 2016.”
Meanwhile, sales of all home types declined 20.3% to 10,196, compared to 12,790 for the same period in 2016. Condo sales in the 905 area were down by 11.1% (to 816) and in Toronto by 4.3% (to 2,038); in comparison, detached home sales dropped by 26.1% to 1,146 in 416, and 26.4% to 3,611 in 905.
The pace of price increases is also slowing: For example, in April 2017, the average selling price for all home types increased by 24.5% to $920,791 and in March 2017, by 33.2% to $916,567. In May, the increase was 14.9% to $863,910.
Condo prices led the pack, posting May price increases of 27.7% (to $564,808) in 416 and 29% (to $448,867) in 905.
TREB notes it’s too early to have seen the impact of provincial government market-cooling initiatives. However hesitant condo owners may do well to list now; a turnaround may be in the offing.