The condominium market in Toronto is experiencing wild price swings as buyers try to figure out where the market is heading. The July numbers from the Toronto Real Estate Board (TREB) shows that some neighbourhoods are seeing prices rise by tens of thousands of dollars, with the exact opposite taking place in other neighbourhoods.
Condo price growth is decelerating
The price of a condo is still much higher than it was last year; however, price growth is rapidly decelerating. The benchmark price of a typical condo across TREB is now $463,000, a 0.94% decline from the previous month.
In the 416 proper, the benchmark is now $481,300, a decline of 0.8% from last month. Both prices are still at huge annual gains, with the TREB benchmark condo still up 27.87%, and the 416 benchmark still up 29.36% from the same month in 2016.
While the benchmark price gains are decelerating rapidly, just last month the annual gains were at 30.6% (TREB) and 32.16% (416).
When the benchmark is broken down by region, it’s clear not all prices are moving in the same direction. The largest gains were registered in the Malvern-Rouge Valley Area of Toronto (TREB 1), where prices are now $30,400 higher than last month. The benchmark price in the E11 region is now $435,800, a 64% surge from the same month in 2016.
The most significant price drop is currently in the Beaches-Woodbine Corridor (TREB E02), where prices have declined to $32,200 from last month. The benchmark price in the E02 is now $681,900, up 9.24% from 2016.
Condo sales are declining
The sales of condominiums across the Greater Toronto Area took a nosedive, particularly in the suburbs. TREB reported 1,840 sales, a decline of 30.7% from the same month in 2016. Breaking that down, the 416 saw 1,345 of those sales, a 28.3% decline from the same time last year.
In the 905, there were 495 sales, a 35.5% decline when compared to the same month in 2016. The 905 saw sales drop a little faster than the 416. However, both registered substantial declines either way.
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