More Supply Equals Moderate Price Growth in Q1
April 18, 2012 — Greater Toronto REALTORS® reported 5,027 condominium apartment transactions in the first quarter of 2012. This result was up by two per cent in comparison to the first quarter of 2011. Over the same
period, the number of new listings of condominium apartments was up by 14 per cent.
“With sales increasing moderately year-over-year and listings growing strongly, the condo apartment market became better supplied in the first quarter. With more choice for buyers in the condo market segment compared to the low-rise segment, the average selling price for condos grew at a slower pace in comparison to some low-rise types including detached homes,” said Toronto Real Estate Board President Richard Silver.
The average selling price for condominium apartments in the first quarter of 2012 was $334,952 – up by 3.7 per cent from $322,857 in the first quarter of 2011.
“Condominium apartment completions were at the highest level ever in 2011. As projects completed, some units held by investors were listed for sale. As a result, it is not surprising that we saw more moderate rates of price growth in the first quarter. However, the fact that annual price growth remained above the rate of inflation is testament to the fact that demand remains strong for this home type,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.