Last month we shared a January Market Update in which we briefly touched on the tremendous growth Q4 2018 experienced in the GTA condo market. We learned average prices are up, but in which region specifically? And are certain types of condos out-selling others? Where does demand lie?
We’ve taken a closer look at these specific metrics and have quantified our findings. You may find some of the numbers quite surprising.
Q4 2018 Condo Market Highlights:
- The Halton Region makes up 4% of the GTA condo market. Other pertinent areas: Peel 13%, York 9%, Durham 2% and City of Toronto 72%.
- Average prices are up 8.3% across the GTA year-over-year compared to Q4 2017. Halton Region has the highest growth rate at 10.8%, followed by Peel at 9.1% and the City of Toronto at 8.9%. (Some areas including York and Durham are flat or have marginal increases)
- Volume of sales (units) are down 9.9% over Q4 2017, but this is offset by a reduction in listings which are down 11.2% over 2017. Fewer listings, mean fewer sales – which we categorize as a tight market.
- The rental market conditions are very strong:
- Average rent for a 1-bedroom is $2,143 in the GTA. There was an increase of 12.7% in 1-bedroom units rented year-over-year for the same quarter.
- Average rent for a 2-bedroom is $2,774 in the GTA. There was a decrease of 0.3% in 2-bedroom units rented year-over-year for the same quarter.
These numbers suggest that there is huge rental demand for 1-bedrooms – this is probably because of the affordability factor.
Taking these metrics into consideration, we must remember that this isn’t a blanket increase or decrease. It’s imperative to further segment the numbers as there are significant variances throughout Halton, more specifically between neighbourhoods and even between buildings. But with only 4% market share and the highest growth rate of 10.8%, it’s clear that demand is exceptionally high in Halton.
If you are interested in learning more about condo market performance, connect with GMT’s Murray McKeage.
Click here to read the Toronto Real Estate Board’s 2018 Q4 Condo Market Report.
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