Sales activity for condos in Toronto has outpaced listings in the past year and there are signs that the second half of 2015 will continue the trend.
New figures from the Toronto Real Estate Board show that 7,656 condo transactions went through the MLS in the second quarter of 2015, 17 per cent higher than for the same period in 2014.
However, new listings increased just 7.3 per cent year over year and active listings were down by 1.3 per cent at the end of the second quarter of this year.
TREB president Mark McLean said: “Market conditions have tightened with months of inventory trending lower. This suggests that recent condominium apartment completions, while strong from a historic perspective, simply helped satisfy a growing demand for this housing type. Absorption rates and price growth statistics point to a healthy market.”
Average selling prices for condos were up by 6.1 per cent to $416,728 year over year in the City of Toronto, which accounts for 70 per cent of all sales in the TREB area. Across the whole region prices were up by 5.8 per cent to $388,066 on average.
Jason Mercer, TREB’s director of market analysis, said that there has been a moderate increase in the pace of price rises, especially when compared to other housing types.
“It is possible that we could see an acceleration in condo price growth in the second half of this year, as growth in sales remains strong relative to growth in listings," he added.