Overall home sales in September were down in the Greater Toronto Area over the same time last year but condo prices continue to rise, according to figures released Wednesday morning by the Toronto Real Estate Board (TREB).
The average price was also up 5.9 percent from $732,039 in August -- the first month-over-month increase since April, when the average hit a record high of $918,285. However, this increase comes entirely from condominium segment, which is up 20% comparing to the last year September.
“With more balanced market conditions, the pace of year-over-year price growth was more moderate in September compared to a year ago. However, the exception was the condominium apartment market segment, where average and benchmark sales prices were up by more than 20 percent compared to last year,” said Jason Mercer, director of market analysts for TREB. “Tighter market conditions for condominium apartments follows consumer polling results from the spring that pointed toward a shift to condos in terms of buyer intentions.”
OK, speaking about tighter market conditions is useless, since demand for these units seems to be endless. Shift to condominiums demonstrates the shift in investor strategy – tighter money supply and peaked prices of detached properties in GTA don’t promise any meaningful rate of return any time soon.
Condominiums cost much less and can be rented easily, representing solid fool-proof investment opportunity. Since condo fees cover building maintenance, managing apartment becomes a hassle-free. Of course, location remains a key – and nothing can beat Toronto downtown so far. While condo sales in subs are stagnating lately, Toronto condo market shows true resilience. Rental units remain in high demand and rent rates, regardless new rent control, continue to climb up.
Latest stats confirm this - the average price for condos was up 23.2 percent to $520,411 and the average price for semi-detached houses was up 7.4 percent at $752,379, compared with last year. But it’s not only about the price – the sales of detached properties were down 40%.
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