Condo prices in Toronto are on a tear. Here are three key takeaways from The Globe and Mail’s article titles “Tale of two markets: 2017 Toronto condo demand soared while sales of new single-family homes slumped” by Janet McFarland.
- Builders sold only 7,700 single-family homes in 2017 (down 58% from last year which came in at 18,365 single-family homes), lowest on record since the Altus Group started keeping track more than a decade ago
- As single-family homes in the GTA break the $1.2Mil. mark, more and more buyers are getting priced out of the market.
- This results in an interesting dynamics, where builders are holding back on single-family homes and converting them to more affordable townhomes or semis
- On the other hand, condo sales figures are setting a new record as sales hit 36,429 units in 2017 (60% of which was in The City of Toronto), while 2016’s condo sales came in at 29,132.
- price of condos rose by 41% in 2017, but The Altus Group is predicting they will remain flat in 2018
- The sale of underdeveloped land that can one day contains condos jumped by 49% in 2017 to $8.5 Bil.
The investment in underdeveloped land, city planning policies that focus on increasing density, and economic factors all point to long-term confidence in Toronto’s RE. Is that wellsupported? We shall see.