Toronto condo prices are expected to continue rising
— The Toronto condo market is expected to remain strong as the Toronto Real Estate Board reports Friday that sales are likely to continue climbing despite the mild weather.
In the first quarter of 2018, sales increased by 11.3 per cent over the same period last year, the TREB said.
The increase is a record.
“Our goal is to have a sales record of around 40,000 units in 2020, which is still well above the peak of the first-quarter sales of 33,000 in 2019,” said TREA president and CEO Brian Baskin.
Baskin says the strength of the market is also the result of strong demand from international buyers and a strong inventory of new construction.
He said the strong demand has helped drive the average price to $2,400 a square foot, up about 30 per cent from $1,300 a square yard in 2020.
While the pace of demand for condos has increased, he says prices are likely going to continue to climb.
There are a lot of buyers in Toronto, he said.
“We know that we have a very strong supply of condos that are in prime areas of the city.
We know we have to build more of them, we have lots of land, we need more land for new construction.”
While that supply has helped push up the price of condos, there are also concerns about affordability.
Many buyers are putting off buying a condo until the economy improves and their monthly payments are reduced, said Baskon.
For many, that means waiting for a condo to be built and then paying off the mortgage.
TREA has launched a website called HousingWatch, which tracks developments, condominiums and other residential properties in the Greater Toronto Area, where prices are rising at a faster rate than the rest of the country.
On Friday, the website showed the average asking price for condos in the GTA was $2.86 million, up from $2 million in January.