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Rising condo prices are the only property type keeping the Toronto housing market afloat, says the Toronto Real Estate Board in its December report. The overall average selling price for 2018 transactions slid 4.3 per cent to $787,300 across the Greater Toronto Area, while condo prices rose 7.8 per cent to $552,400.
“Home prices were up very slightly in the City of Toronto and down in the surrounding GTA regions. This dichotomy reflects the fact that the condominium apartment segment, which accounted for a large proportion of sales in the City of Toronto, performed better from a pricing perspective than the detached market segment,” TREB says.
No matter if they were Etobicoke condos, North York condos, or Liberty Village condos, 416 units flew off the MLS. Condo sales accounted for about 30 per cent of transactions in 2018, the second-fastest moving property type, next only to detached houses at 43 per cent.
Townhouses and semi-detached houses accounted for just a fraction of sales at 7.5 per cent and 9 per cent, respectively.
GTA-wide sales sank 16 per cent to 77,426 reported transactions compared to 92,263 in 2017. TREB blames this slowdown on the new stress test, rising interest rates and confusing government regulations, saying market conditions picked up in the latter half of 2018.
In December itself, condos rose 10 per cent to $554,500 outpacing the housing market as a whole, which rose only 2 per cent to $750,200. That’s likely because buyers continue to move away from expensive detached houses, which have a long way to fall until they are within the budget of most Torontonians. Single-family home prices slid 4.5 per cent across the GTA in December, but remain at $950,000. Even after a dramatic 8-per-cent plunge in the 416, home prices remain over $1.1 million, while in the 905 they are just under $900,000, falling just 2 per cent.
In contrast, condo units are half the cost, despite their sustained rise. Units also continue to move faster than houses — single-family homes typically spent 36 days on market this December, while condo units spent just 28. Condos are likely to remain popular into 2019.
For more details, check out the infographic below:
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