Condo sales posted unusually weak price gains this March, rising only 2 per cent year over year, says a recently released report by the Toronto Real Estate Board.
It’s surprising because since new mortgage regulations came into effect on January 1, 2018, condo prices have been the darling of the Toronto real estate market, rising between 5- 10 per cent year over year every month, even as detached houses softened. But this March, condo prices only grew slightly.
Units in the 416 rose 2.3 per cent to $603,969, while units in the 905 grew 3.3 per cent to $463,774. Condos for sale in downtown Toronto were still the most expensive units across the TREB region, going for $673,220, but are only $20,000 more expensive than in March 2018.
Those looking to buy a townhouse for sale in Toronto will find they’re among the second-least expensive market segment, posting only minor gains.
Units in the 416 rose only 2.3 per cent to $741,881 and units in the 905 rose only 1.2 per cent to $617,226.
Price Growth Stable but Slower in GTA
Overall, price growth for the total GTA housing market slowed The average price remained stable at $788,335 (just a 0.5-per-cent increase from last March).
TREB suggests a longer amortization and loosening mortgage regulations to kick start the market, along with more development.
“Bringing a greater diversity of ownership and rental housing online, including ‘missing middle’ home types, should be a priority of all levels of government. TREB is happy to be taking part in the City of Toronto’s consultations for the Housing TO – 2020-2030 Action Plan, and will certainly be raising the supply issue during these discussions,” said TREB President Garry Bhaura.
Lack of Supply Still an Issue
Nevertheless, TREB still warns of future price heating as new listings are so low, (they declined 5.1 per cent), it creates a competitive landscape.
“Market conditions have remained tight enough to support a moderate pace of price growth. Despite sales being markedly lower than the record levels of 2016 and early 2017, the supply of listings has also preceded,” said Jason Mercer, TREB’s Chief Market Analyst. “This means that in many neighbourhoods throughout the GTA, we continue to see competition between buyers for available listings, which provides a level of support for home prices.”
For more data on the Toronto housing market this March, check out the infographic below:
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