The latest market report from the Toronto Real Estate Board (TREB) shows that, similar to April, condo apartments remained a shining spot in the Greater Toronto Area real estate market in May.
In Toronto, the average price of a condo was $602,804, a 6.5% increase from May 2017. Condos in the 905 areas surrounding Toronto also saw increases, though less dramatic; prices for those condos were up 1.2% year-over-year. In comparison, prices for detached homes in Toronto and in the 905 areas were down by 5.6% and 9%, respectively.
Meanwhile, sales of condos in the GTA were down by 15.5% in May, and new listings of all housing types were down by 26.2% when compared with May 2017.
However, inventory across the board is low for in-demand condos. Their affordability, relative to detached homes, continues to make them a desirable choice for first-time buyers who are finding it difficult to enter the market. This is leading to upward pressure on home prices.
“Market conditions are becoming tighter in the Greater Toronto Area, and this will provide support for home prices as we move through the second half of 2018 into 2019,” says Jason Mercer, the TREB’s director of market analysis. “There are emerging indicators pointing toward increased competition between buyers, which generally leads to stronger price growth.”