Compared to the sizeable price fluctuations that the Toronto real estate market has been used to since April 2017, we are pleased to see that the Toronto condo market is shaping up for a strong and consistent summer season. Using the Condos.ca Market Report, we’ve compiled sales activity and condo sold price data from the month of May for a closer look at how the condo market will be performing in the summer 2018.
Summer Toronto condo market update*
May outlook shows a simmering summer condo market
Midtown stands out as the most expensive area to live in Toronto
As the spring gives way to summer real estate trends, Toronto’s Midtown neighbourhood stands out as the most expensive area to live in Toronto, with average condo sold prices increasing 8.7% since our Spring 2018 Toronto Condo Market Update. All across the board, average condo sold prices have increased since March and through the spring. With the average Toronto condo selling for $615,015, condos for sale in North York and Etobicoke are offering unique value opportunities, and buyers looking for increased square-footage would be wise to search in these neighbourhoods.
At the time of writing this . . .
The number of active for sale condo listings in Toronto has increased to 2,824 from 2,063 listings in March, while the number of condo sale transactions has also increased, with 1,824 sales in May. In general, Toronto inventory is still under pressure, especially in the rental market, and this trend is likely to continue throughout the summer and into the fall.
Speaking of the Toronto rental market . . .
And don’t forget about condos for sale . . .
Toronto rental market feels the most pressure this summer
The average asking sale price for Toronto condos has remained relatively unchanged since the spring market. Last year’s cooling of Toronto’s real estate has levelled out prices within the $500-750K range, which is a trend we have seen since the end of 2017, and it is likely to continue into the fall of 2018 (barring the introduction of new legislation or interest rate changes).
The real pressure this summer will be felt in the Toronto rental market, in which average monthly rates continue to rise and supply tightens. The demand for affordable rental housing is only growing in Toronto and, due to last year’s Fair Housing Plan and the provincial-wide rent control (which was intended to alleviate stress on renters), mom and pop condo investors who make up a huge percentage of the rental market are closing shop or else increasing rental rates with each new tenant turnover.
On top of that, developers traditionally tend to be discouraged from pursuing purpose-built rental properties because of difficulties in securing interested investors. According to Urbanation, however, there may be some hope as applications for new purpose-built rental buildings have increased 3.5% since last year. Let’s hope that has some positive impact on supply. In either case, this summer is a tough time to be looking for Toronto condos for rent, but our professional Condo Pros are always here to help.