Toronto Real­tors Release Q2 Condo Mar­ket Report

Greater Toronto Real­tors reported 6,435 con­do­minium apart­ment trans­ac­tions dur­ing the sec­ond quar­ter of 2012 – down by 2.6% com­pared to 6,609 trans­ac­tions reported in the sec­ond quar­ter of 2011. New list­ings for con­do­minium apart­ments were up sub­stan­tially on a year-over-year basis, climb­ing by 19% in com­par­i­son to 2011.

Com­ment: Now we see a con­tin­u­ing trend, sales vol­ume going down. Last month the entire Toronto real estate mar­ket saw a slow down in sales vol­ume. Prices still rose, but fewer prop­er­ties changed hands. But again, the sum­mer is usu­ally a slower time, his­tor­i­cally. Just because the past hand­ful of years have seen a ton of busi­ness through the warm months does not mean that this is any­thing strange. We see the usual long term trend, which bucks the cur­rent short term trend. But again, another period of more list­ings, this is what it is going to take to slow things down. More choice means less stress and upward pres­sure on prices. More list­ings and fewer sales will cer­tainly put the brakes on things – MUCH more so than any changes to mort­gage rules.

“The Toronto condo mar­ket has been the best-supplied mar­ket seg­ment in the GTA this year. Many con­do­minium projects have com­pleted over the past year and this has resulted in a sub­stan­tial increase in list­ings and ulti­mately more choice for buy­ers,” said Toronto Real Estate Board Pres­i­dent Ann Han­nah. “The greater degree of choice in the condo mar­ket trans­lated into a mod­er­ate rate of price growth com­pared to what was expe­ri­enced in the low-rise mar­ket segment.”

The aver­age price for sec­ond quar­ter con­do­minium apart­ment sales was $342,212, rep­re­sent­ing a 3.2% increase over the same period in 2011.

Com­ment: And rumours of prices falling from the begin­ning of the year are yet again proven false. To all those who said that lower sales vol­ume last month meant it was now a buy­ers’ mar­ket – wrong. Prices were up in June and are up again this month so far. That does not make a buy­ers’ mar­ket. But with more list­ings and fewer sales, we could cer­tainly be headed in that direction.

“Sell­ers seemed to be well-aware of condo mar­ket con­di­tions in the sec­ond quar­ter. On aver­age, units were priced in line with buyer expec­ta­tions, with apart­ments sell­ing for 98% of the ask­ing price in less than a month’s time,” said Jason Mer­cer, TREB’s Senior Man­ager of Mar­ket Analysis.

Greater Toronto Condo Mar­ket Summary

City of Toronto
2012 Sales: 4,529 | Aver­age Price: $364,303
2011 Sales: 4,673 | Aver­age Price: $355,645

York Region
2012 Sales: 625 | Aver­age Price: $340,875
2011 Sales: 690 | Aver­age Price: $323,774

Durham Region
2012 Sales: 158 | Aver­age Price: $217,417
2011 Sales: 135 | Aver­age Price: $214,125

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Con­tact the Jef­frey Team for more infor­ma­tion – 416−388−1960

Lau­rin & Natalie Jef­frey are Toronto Real­tors with Cen­tury 21 Regal Realty.
They did not write these arti­cles, they just repro­duce them here for peo­ple
who are inter­ested in Toronto real estate. They do not work for any builders.
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