John Pasalis in Toronto Real Estate News
Below is the Toronto Real Estate Board's condo market commentary written by their Senior Manager of Market Analysis, Jason Mercer.
Active Listings Growth for Condo Apartments Outpacing Listings for Low-Rise Home Types
Following very tight market conditions in the first quarter of 2010, the resale home market became better supplied between the beginning of April and the end of June. The number of active listings climbed strongly in the second quarter compared to the same period last year. Leading the growth in listings was the condominium apartment segment. In the central districts in particular, active listings for condominium apartments grew by 79 per cent year-over-year in the second quarter – a much stronger growth rate relative to the 25 per cent increase for all other home types.
The active listings trend for condominium apartments follows the trends for annual median price growth and new condominium apartment completions in the GTA. With the exception of a brief downward blip in the third quarter of 2009, new condominium apartment completions have remained strong over the past year. This suggests that many new units, which are owned by investors or buyers whose housing needs have changed since their preconstruction purchase, continue to be listed in the GTA resale market. This is especially the case within the City of Toronto where almost 80 per cent of GTA condominium apartment construction is taking place. Strong price growth has also attracted more listings into the market, as some owners look to convert substantial “paper” returns into actual “dollar” returns. Of course, with a surge in active listings over the past few months, buyers have benefitted from more choice and the annual growth rate for the median price has moderated to a certain degree.
