As we chip away at 2018, the recent changes to mortgage regulations continue to leave their mark on the market. Buyers who are unable to qualify for more expensive homes are shifting their interest down-market and driving demand for lower-priced options such as condominium apartments. Couple desperate buyers with low levels of inventory and the result is inflated prices, the magnitude of which are reaching crisis proportions.
The average sale price in the GTA during March was $784,558. In Toronto’s central core (C01-C04,C08-C12), the average sale price for condominium apartments was $753,057. This figure, not much less than the GTA’s average sale price for all property types, equates to an average sale price per square foot of approximately $1,000.
In March there were 1,573 condominium apartments reported sold in the GTA. At the end of March there were only 1,854 condominium apartments available for sale, most of them in Toronto’s central core. If this rate of absorption continues, there will be almost no product for buyers, and prices will continue to rise unless there is government intervention.
In the past, a condominium apartment was the most affordable housing option in central Toronto. If the number of condo listings doesn’t increase soon, this market segment will be unattainable for the majority of buyers; this is especially true for those looking to enter the market.
According to Zoocasa, from 1983 to 2015 the median total income in Toronto has increased 33% from $58,700 to $78,280 in 2015 (based on the last Statistics Canada Census). Comparatively, the average Toronto home price has increased an astounding 693% from 1983 to 2017.
With the way the market is going, it looks like buying a home is one scenario when Millennials truly have it harder than their older counterparts 🙂
Whether you’re buying or selling, preparation is the key to success. It’s never too early to start the planning stage.
If you’ve got questions, I’m here to answer them. Reach out to me today: 416.566.7730 or susanbandler@chestnutpark.com. I’m happy to help you determine the best strategy for a successful move in this market.
