The weather in Toronto might be refusing to accept the arrival of spring, but Toronto real estate is a force of nature all its own. For buyers and especially sellers, the spring real estate season is here! We’ve used sales data from the month of February to look at 2018 condo market trends in Toronto and how the spring season is shaping up.
Spring 2018 Toronto Condo Market Update*
In downtown Toronto . . .
The average condo (800sqft) is selling at $895 PSF based on data in March. As the average PSF for condos in downtown Toronto moves steadily towards the $1,000 mark, we may enter a period in which finding a condo for less than $1,000/SQFT will be difficult if not even impossible. The market mentality for the spring of 2018 will likely hold $1,000 PSF for downtown condos as the norm. Anything listed below $1,000 is worth investigating for true value.
At the time of writing this . . .
The number of active for sale condo listings in Toronto has increased to 2,219 from where the market sat in February. Listings are beginning to blossom for the spring season, but overall inventory is still tight. From what we’re seeing at this point, the spring season is airing in favour of a seller’s market.
Average Toronto Condo Asking Prices
When it comes to bedrooms . . .
The highest level of activity in the condo market occurs within the $400k – $700k price range. It’s the sweet spot in the condo market right now. Typically, the condos for sale in this price range are 1 bedroom or 1+1 bedroom units, depending on the building and neighbourhood. We expect the 2018 spring season to see a lot of activity in this price range. Larger condos with 2 or 3-bedrooms are averaging above $700k, which moves them into a slower area of the market. That being said, the demand for family-friendly condos that require two or more bedrooms is a growing trend that is here to stay in Toronto.
Average Toronto Condo Rental Prices
And last but not least . . .
The Toronto rental market has become a topic that should require a *trigger warning* message. Since the introduction of rent-control and new landlord & tenant rules last spring, the prices of condos for rent in Toronto have shot up drastically, averaging roughly $2,300/month for a 1-bedroom condo. Bidding war behaviour has become the norm. Extremely limited inventory combined with strict vetting from landlords has made the rental market a very stressful place to find yourself. Unfortunately, those conditions are not likely to change this spring or even this year. Not unless rent control is retracted or we see a big influx of rental supply. In all areas of real estate, stress should be rooted out. If you are looking to rent this spring and you’re freaking out, here are some helpful tips from our team of Condo Pros.
*Data sourced via Condos.ca Market Report as of March 28, 2018