Despite a remarkable surge in new listings, the average resale condo price in the Toronto region rose 8.3 percent to $633,484 in the third quarter.
The third quarter data, published today by the Toronto Regional Real Estate Association (TRREB), showed that condo sales rose in the July to September period by 10.5 percent compared to the same period a year ago.
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There were 7,072 sales recorded across the Toronto region, up substantially from the 3,459 sales logged during the previous quarter, which included figures from the market’s pandemic-induced freeze through April and May.
Despite the strong bounce in sales, activity was significantly outpaced by new listings hitting the market. There were 17,613 new listings in the third quarter, up 84.6 percent over the same period last year. TRREB reported that active listings at the end of the quarter were more than double the number recorded at the end of the third quarter in 2019.
TRREB President Lisa Patel said it was a strong showing for the condo market, but the low-rise market had performed better during the same period.
“The condominium apartment segment experienced the second best third quarter on record in terms of sales and the best third quarter on record in terms of the average selling price,” said Patel.
“However, while the pace of year-over-year condo sales and price growth remained strong, it was lower than that reported for low-rise home types,” she continued.
Patel noted that condo investors opting to sell their units had an impact on supply. A weakened rental market, especially in downtown Toronto, and new by-laws around short-term rentals were major motivating factors for investors’ decisions to sell.
The increase in supply has yet to lead to any measurable price plateaus or declines in the condo market. Beyond the 8.3 percent rise in the average condo selling price recorded across the Toronto region, the City of Toronto saw a comparable annual increase to $680,963 in the third quarter.
“While condo buyers certainly benefited from more choice in the third quarter compared to the past few years, there was still enough competition between buyers to support average selling prices substantially above last year’s levels,” said TRREB Chief Market Analyst Jason Mercer.
“It is important to note that one quarter does not make a trend, either on the demand or supply sides of the market. How the relationship unfolds between condo sales and listings over the next three to six months will dictate the longer-term direction for selling prices,” Mercer added.