The equity gains for the lucky ones who own Toronto condos are very real.
In fact, according to the Toronto Real Estate Board (TREB) data, condo prices have risen 54 per cent since 2015 alone. Many Toronto residents have drawn equity from their condo purchase in order to make homeownership a reality.
As one of the most lucrative housing segments, condo sales have spiked 11.1 per cent on an annual basis – with 6,407 condo apartment sales this third quarter in the GTA – according to TREB. An average price for a Toronto condo increased by 5.8% during the quarter ending September 2019, settling at $584,564.
“As economic conditions continue to be favourable for job growth in the Greater Toronto Area, people have continued to come to the city for work. Home ownership is important to many Canadians, and, as a relatively affordable housing option, condos in the GTA offer prospective buyers the chance to achieve their dreams of owning property,” TREB president Michael Collins stated in a news release.
But with Toronto leading the global trend towards mixed-use housing , even more people are clamouring to avoid commuting in order to live and work in the same neighbourhood. It’s a trend that has likely influenced the injection of 9,538 new listings into the region’s condo apartment supply. The figure was just a minimal 1% year-over-year drop from the 9,636 listings added the same time last year.
“Condominium apartments are obviously a popular choice amongst first-time home-buyers. Moreover, it is also important to remember that condominium apartments owned by investors represent a huge component of the GTA rental stock and certainly account for most additions to the rental stock, on net, over the past decade,” TREB chief market analyst Jason Mercer added.
Mercer attributes the small decline with less condo completions this year, as they could have “translated into fewer investor-owned units being listed for sale in Q3 2019 compared to Q3 2018.”
“With this in mind, a well-supplied condo segment will be important moving forward to ensure that we can keep up with population growth driven by a strong and diverse regional economy,” Mercer said.
And the condo boom shows no signs of letting up anytime soon!