Condo prices in the suburbs of the Greater Toronto Area jumped significantly this September, according to the Toronto Real Estate Board’s monthly report.
Condo prices in the 905 rose 9.2% year over year to $497,403. Condo prices in the 416 also rose, albeit less dramatically — 3.3% to $636,817. Overall, condo prices rose 4.2% across the GTA to $595,013. It’s unclear why this sudden rise occurred, but it’s consistent with the market’s overall strength this month.
The average selling price for all property types in the GTA jumped 5.8% year over year to $843,115 — the biggest gain seen in 2019. Sales also soared 22% to 7,825 transactions. That’s still below the peak seen in September 2016 with 9,800 transactions, but demonstrates that the market is well on the road to recovery.
Condo sale prices jumped 15.9% across the GTA to 2,071 transactions — 22% in the 905 to 621 units sold and 13.5% in the 416 to 1,450 units sold.
Toronto Central remains the most in-demand area for condos, with units selling for an average of $719,341. To put that in perspective, a unit in downtown Toronto is $150,000 more more than the average selling price of houses for sale in Oshawa, which stands at $566,008.
Outside of Toronto Central, Mississauga is the most active region for condos. Units go for $492,726, while detached houses for sale in Mississauga go for just over double, at $1,098,793.
Condo apartment sales now make up 26.5% of total transactions, with condo townhouses making up an additional 7.5% of sales. Detached houses are responsible for the majority of the rest, at 46.2%. That’s almost the exact same ratios as September 2016, indicating a stable and consistent demand for high-density living.
TREB expects price growth to rise further, citing shrinking supply as the main market driver.
“We have experienced multiple months this year wherein the annual rate of sales growth outpaced the annual rate of new listings growth, resulting in the overall number of active listings at month-end being well-below last year’s levels. This speaks to tightening market conditions and an accelerating annual rate of price growth,” the TREB report states.
With only rising demand and limited inventory, there’s every reason to have long-term confidence in Toronto condos.
For more information on Toronto’s September housing market, check out the infographic below:
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