The Toronto Real Estate Board released data regarding home and condo sale for three months. The condo report contains some interesting data regarding sales. Once you start to dive into numbers you start to see some patterns.
Toronto downtown market is very different from other regions of Toronto.
“Condominium apartments represent a relatively affordable home ownership option in the Greater Toronto Area, particularly for first-time buyers” said Mr. Garry Bhaura, president of TREB. New condo construction for 1 bedroom and studio sized units are being absorbed by the market. Some of these units are being bought by overseas buyers but the exact numbers differ depending on the source. You can have an overseas student buying a condo with their foreign-based parent’s money and that can qualify as a Canadian based non-investor purchase according to some people. If you drive up to the Yonge and Sheppard area you can see numerous examples. Even some condos in downtown Toronto display the same pattern with the building having many foreign students studying in Toronto. The universities love having these students since they collect much higher tuition fees from them.
The demand for resale units is strong but some buildings its beyond strong, with units being snapped up in under 7 days. These condo building usually some unique feature that makes them stand out when compared to other buildings. One easy to see example is on Lansdowne Ave which might not be seen as a real estate hot bed when you comes to condo sales. Whenever units at the Foundry Lofts are on sale they get purchased very quickly. The building is actually an old factory with the units built inside the old structure. If you drive by you can see that it does not resemble many other condos in Toronto and two bedroom condos are selling for close to $800,000 right now.
Another factor that helps some condo building in Toronto sell more quickly is the location in relation to transit. While that might be something that everyone considers its important to think about that when you compared TREB data to specific buildings. I have not seen a sales report with condo sales days on market data overlayed on a TTC map. The TTC route map should be part of the TREB report when they determine which areas of Toronto are experiencing strong demand.
Total condo units sold as reported via TREB’s MLS® System totaled over 5,500 condos in three months of Sept., Aug., July in 2018. The number sold was up two per cent when compared to the units sold sales last year in the same time period. The number of new listings decreased about two per cent when compared to last years data. This combo of increasing sales and decreasing new listings could lead to a tighter market, but as noted it can depend on the actual building and its location in the city.
Recent survey data reveals that the large majority of young people in Toronto are concerned about home and condo ownership. Over 90% of people surveyed agreed that the goal of home and condo ownership has become more difficult for younger people in Toronto. With these insights in mind, it makes sense that relatively lower priced home ownership alternatives like condo apartments have been very popular with home buyers over the past year. The introduction of laneway housing may help some younger people enter the property market although ownership will be hidden in their parents name since they can not sell the laneway home.