The Canada Mortgage and Housing Corporation (CMHC) has released its Housing Market Insight Report for the Greater Toronto Area. The primary finding of the report is that the risks in condo building in Toronto seem to have been mitigated.
“Condo building activity in Toronto seems to be well-managed,” said Dana Senagama, principal, market analysis for the GTA. In spite of this encouraging information, future inventory management will be critical.”
According to the report, more than three-quarters (79%) of condo projects in the Greater Toronto Area didn’t start construction until they reached a pre-sales threshold of 70 per cent sold, and the majority of the other projects are smaller, or later phases of other developments.
Most of the unsold inventory in the GTA is in Markham or in Toronto Centre, where the condominium markets are the most active.
Read the full report here.
There were just fewer than 9,000 condo apartment sales in the second quarter of 2016 according to the Toronto Real Estate Board, representing an increase of over 17 per cent over the same time last year.
“TREB Realtor members are involved in all aspects of the condominium apartment market in the Greater Toronto Area, from working with buyers at the pre-construction stage of development through to the resale or rental of existing units,” said the president of the Toronto Real Estate, Larry Cerqua. “While we have certainly seen a lot of condo construction over the last few years, project completions have not resulted in a glut of inventory.”
During this past quarter, the average selling price for a condo in Toronto reached $415,326, which is an increase of 7.1 per cent over the same time last year.
Jason Mercer, the director of market analysis for the Toronto Real Estate Board, said that, “Similar to the low-rise market segments, we have seen growth in condo sales outstrip growth in condo listings this year. Seller’s market conditions exist for condominium apartments in many parts of the GTA including Toronto’s downtown core. This is why we are seeing average price growth well-above the rate of inflation.”
The number of Toronto condos rented in the second quarter of 2016 was down only 2.7 per cent compared to the same time last year, according to the Toronto Real Estate Board.
“Greater Toronto Area Realtors continued to facilitate a large number of rental transactions in the second quarter, as investor-held condo apartments remained an important component of the overall rental supply in the GTA,” said the president of the Toronto Real Estate Board, Larry Cerqua. “If the market had benefited from more listings in Q2, the number of rentals would have likely been above last year’s level.”
The average rent for a one-bedroom condo increased by 6.4% year-over-year, up to $1,710. For a 2-bedroom condo, the average rent increased by 4.1%, to $2,330.
Jason Mercer, the director of market analysis for the Toronto Real Estate Board, said that, “Year-to-date, total condominium apartment completions in the GTA were down compared to the same period in 2015. This contributed to the decline in the number of apartments listed for rent on TREB’s MLS system. However, the number of rental transactions remained
A new report from condo statistics firm Urbanation reveals that the average cost of renting a condo in Toronto has increased during the first quarter of 2016 compared to the same time last year.
During the first three months of the year, the average rent was $1,891 per month, which breaks down to $2.53 per square foot. Year over year, that’s a 6.8 per cent increase. The first quarter of 2016 saw the highest number of rental transactions and the highest dollar amount per square foot for Toronto condos since the first quarter of 2012.
Both the cost of rent and the number of rental transactions have been increasing significantly over the past few years, and there were 40 per cent more applications to build rental buildings during the first quarter.
For more, visit the Huffington Post here.
The Canada Mortgage and Housing Corporation has released its latest Condominium Owners Report for Toronto and Vancouver. Three quarters of condo owners do not own secondary units, while 23.5 per cent own at least one secondary unit. The highlights of the report speak to the later group that owns additional units aside from their primary units, and they are:
Three quarters of condo investors only have one unit.
10 per cent of condo owner investors have three or more secondary units.
The majority (90 per cent) of condo owner investors don’t expect to buy more units in the next year
Almost half of condo owner investors bought a second unit for rental income.
56 per cent of condo owner investors expect the value of their most recently purchased condo to increase, five per cent predict a decrease, and 35 per cent anticipate no change in value.
One-fifth of condo owner investments put a down payment of less than 20 per cent on their units, while 45 per cent put more than 20 per cent down.
Almost two-thirds of condo owner investors plan on holding onto their most recently purchased unit for more than five years.
48 per cent say their last secondary unit is rented out, down from 52 per cent in last year’s survey.
According to the Toronto Real Estate Board, there was a 20.7 per cent increase in the number of condominium apartments rented out in the Greater Toronto Area during Q4 2015 compared to Q4 2014.
“While the ownership market is often top-of-mind when we think about condominium apartments in the GTA, it is important to remember that investor-held condos have become and increasingly important source of rental supply,” said Mark McLean, the president of the Toronto Real Estate Board. “Renters looking for mid-to-high-end units have tended to be pointed at condo rentals. Strong demand resulted in tighter market conditions in Q4.”
The average rent for a bachelor increased 1.7%, the average rent for a one-bedroom increased by 2.8%, the average rent for a two-bedroom increased by 3.3%, and the average rent for a three-bedroom increased by the most at 9.9%.
Jason Mercer, the Director of Market Analysis for the Toronto Real Estate Board, said that, “Tighter rental market conditions resulted in strong increases in average rents compared to last year. Looking forward into 2016, expect rent growth to remain strong if we continue to see growth in the number of transactions outpace growth in the number of units listed for rent.”