Greater Toronto REALTORS® reported 5,770 condominium apartment Sold [VIDEO]

Real Estate Snatch at Wednesday, October 26, 2011

The average selling price increased nine per cent
Greater Toronto REALTORS® reported 5,770 condominium apartment transactions through the TorontoMLS® system in
the third quarter of 2011, representing a 24 per cent increase over the same period in 2010.

The average selling price increased by almost nine per cent to $333,352. The resale condominium apartment market tightened in the Greater Toronto Area since the Fall of 2010.

This tightening was in line with a broader trend in the existing home market, where listings through the end of the second quarter were in short supply compared to a year ago.

Condo sales, at 6,721, were up by almost 0.5 per cent in the second quarter, while active listings were down by 13 per cent to 5,641 at the end of June. With more competition between condo buyers, it was no surprise that the year-over-year rate of growth for the median selling price accelerated to over 10 per cent by the end of the quarter.

The supply situation will likely improve in the second half of 2011 and into 2012. Following a large spike in condo apartment completions in the second quarter (most notably in June), total completions through the first six months of the year, at 10,238, were up by 65 per cent compared to the same period in 2010. Generally speaking, increased completions of new condo apartments leads to increased listings in the resale market.

Many of these listings will come from investors who purchased one or more units at the pre-construction stage of development and who will now be looking to take advantage of an increase in value during the construction period.

More choice in the condo apartment market will result in more balanced market conditions and a moderation in the annual rate of price growth to a more sustainable pace over the long term

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