Toronto condo sales rose. Supply remains tight. Rents increased sharply!

Sales of condos in the Greater Toronto area were up 22.1 per cent in the third quarter of 2016 compared to the same period of 2015 but the market remains constrained by tight supply.

There were 8,014 sales recorded through the MLS system of the Toronto Real Estate Board but inventory dropped 13.3 per cent from the third quarter of 2015 as completion of new units slipped.

Average prices rose 9.6 per cent to $415,643 but Jason Mercer, TREB’s director of market analysis, says that even though tight supply has pushed prices higher, condos in the market remain an attractive option for buyers.

“Annual rates of price growth remain well-below those for low-rise home types.  Condo apartments continue to be an affordable entry point into home ownership for first-time buyers,” he said.

A a result of tightening supplies of condo units in the market there was a 17.3 per cent drop in condo apartments available to rent in the Greater Toronto Area in third quarter of 2016 compared to a year earlier, Toronto Real Estate Board says.

“Demand remains very strong for condominium apartments in the Greater Toronto Area. The key issue in the third quarter was the fact that there was a pronounced decline in the number of units available for rent,” said Larry Cerqua, TREB president, adding that fewer new developments became available to investors in the quarter.

The number of signed lease agreements through the board’s system was down 4.8 per cent while rents increased sharply; a 1-bedroom apartment averaged $1,777, up 7.2 per cent; a 2-bedroom apartment averaged $2,419, up 7.9 per cent.

Are you looking to buy a property? If you like, I can tell you exactly how much you can afford to borrow, which is the best mortgage for you or how much I could save you right now if you have an existing mortgage.

Until next time,
Your mortgage expert Evgeny Kamenskiy

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