Toronto Market Snapshot March 2018April 4, 2018 | Real Estate Stats
The 2018 Toronto real estate market has been off to a heated start again, particularly with condos. The upward movement in average pricing for condos shows itself plainly in the March 2018 stats, just out from the Toronto Real Estate Board on Wednesday, April 4th.
The first thing to note is that we’ll only be looking at the statistics for condos in everything that is to follow. Houses are a whole other beast that deserve individual attention, since the activity with semi-detached, detached and row houses behaves completely differently from condos.
The Big Takeaway
The big takeaway from the below stats are increasing prices for downtown condos. It used to be that a 2% or 3% appreciation in price would be respectable over the course of one year. In the last number of months though, that amount is almost expected on a month-over-month basis! In the C01 District, where the majority of downtown condo sales occur, the average price rose from $652,105 in February 2018 to $687,700 in March 2018.
The average price of a condo in C01 alone has gone up 5.2% in one month
Reasons for the price surge
There are suspicions that those last few buyers with lingering pre-approvals granted before the January 1st 2018 commencement of the new mortgage rules had been scrambling to make a purchase before their pre-approval expired. In many cases, those buyers approved under the new rules would suffer an approximate 20% decrease in purchasing power if they didn’t buy with their 2017 pre-approvales, so with a consequence like that on the line, it may have increased buyers’ motivation to get in strong with a purchase.
Also, there was a noticeably low variety of purchase options for buyers in February and March of this year, with the spring market having taken off early in late January. As the spring and summer months approach, I would suspect more listings to hit the market and that will help level the playing field a little more between buyers and sellers.
Where do you stand in the market?
If you’re a seller (or even just an owner), you are still in the best position in today’s market. Your condo has likely gone well up in value and you can call the shots with your listing.
If you’re a buyer, make sure that you’re realistic with your purchase plans to avoid disappointment. It was only a few years ago that a $600,000 budget could get you a 2 bedroom unit in the Bay Street Condo Corridor. Nowadays, that price will pocket you a modest 1+1 bedroom unit.
No matter whether you’re a buyer, seller, landlord or tenant, contact us and we’ll help you find your fit in the downtown Toronto condo market.