Toronto Real Estate Agents Report Con­do­minium Trans­ac­tions in Q1

Greater Toronto real estate agents reported 5,027 Toronto condo sales in the first quar­ter of 2012. This result was up by 2% in com­par­i­son to the first quar­ter of 2011. Over the same period, the num­ber of new list­ings of con­do­minium apart­ments was up by 14%.

Com­ment: Com­pare this with the house mar­ket. Condo list­ings rise 14%, so prices only go up 2%. House list­ings go down, so house prices rise over 10%. Prices are tied more to sup­ply and list­ing inven­tory than any­thing else

“With sales increas­ing mod­er­ately year-over-year and list­ings grow­ing strongly, the Toronto condo mar­ket became bet­ter sup­plied in the first quar­ter. With more choice for buy­ers in the Toronto condo mar­ket seg­ment com­pared to the low-rise seg­ment, the aver­age sell­ing price for con­dos grew at a slower pace in com­par­i­son to some low-rise types includ­ing detached homes,” said Toronto Real Estate Board Pres­i­dent Richard Silver.

The aver­age sell­ing price for Toronto con­dos in the first quar­ter of 2012 was $334,952 – up by 3.7% from $322,857 in the first quar­ter of 2011.

“Con­do­minium apart­ment com­ple­tions were at the high­est level ever in 2011. As projects com­pleted, some units held by investors were listed for sale. As a result, it is not sur­pris­ing that we saw more mod­er­ate rates of price growth in the first quar­ter. How­ever, the fact that annual price growth remained above the rate of infla­tion is tes­ta­ment to the fact that demand remains strong for this home type,” said Jason Mer­cer, TREB’s Senior Man­ager of Mar­ket Analysis.

Com­ment: Why do we say investors sold their units? How do we know who the sell­ers were? It could have been some­one who got mar­ried since they bought, lost their job, moved to Water­loo – we have no idea why they sold and should not ever assume to know. The fact is, there are a lot of con­dos for sale, so prices rise slower than with houses – where the sup­ply is much tighter.

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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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