After all the record-breaking trends we saw in 2016, it should be no surprise that the year ended with the Toronto condo market outperforming the S&P/TSX Composite Index.* As of December 30, the Condos.ca price-per-square-foot index showed a year-over-year increase of 22.44% for the GTA condo market.
Toronto Condo Market 2016 Wrap-Up
Yes, it was a hot year for the Toronto condo market, ending with a 22.44% annual investment return compared to 17.51% for the TSX Composite. Looking back at three, five, and ten-year trends, we found that the condo market has consistently outperformed the TSX, and we expect that to continue in 2017.
According to the Toronto Real Estate Board, the average price for a condo apartment in the City of Toronto increased from $378,249 in December 2015 to $440,669 in 2016.**
At the same time, the average days on market fell from 36 to 24, and the number of active listings also dropped from 2,976 to 1,277.
The total number of condos sold in December was 1,238 up from 1,038 in 2015.
It’s clear that in 2016 the demand for condos in Toronto far exceeded the supply. Prices shot up, often under the pressure of intense bidding wars. The increased demand was the result of several factors, notably the lack of affordability in the freehold housing market that pushed buyers over into the condo market. In addition, it was likely a combined effect of fewer new condo developments and an influx of buyers from other Canadian cities and international investors.
Toronto Condo Market 2017 Forecast
Based on current market indicators, 2017 is expected to show even higher levels of demand and increased price growth. So, in other words, don’t wait, buy now. We know that sounds pushy, but it’s honestly our best piece of advice in today’s market conditions.
If prices are rising, the longer you hold off on the decision to buy a condo in Toronto the more you’re technically losing.
Some people are watching the horizon for signs of the much-anticipated price correction wave, but it is not likely to happen in 2017. Instead, we anticipate double-digit growth for this year. It’s always wise to be cautious, but in today’s market fortune does truly favour the bold.
To stay up-to-date with the Toronto condo market, follow the Condos.ca real-time market report for clear price-per-square-foot analysis on neighbourhoods, buildings, and individual condo listings.