May 2014 was the best May on record for home sales in the Toronto area with 11,079 homes trading hands during the month. This represented an increase of over 11% from May of 2013.
Tight market conditions prompted a strong 8.3% increase in the average sale price year-over-year in the month. When you drill down into the average price, it is interesting to note that the average price for a detached home in the City of Toronto was $943,055 whereas the average price for a condominium apartment in the City of Toronto was $401,809. The average price for detached homes and condominium apartments in areas of the GTA outside of the City of Toronto was $648,439 and $307,307 respectively.
How the Toronto Market Has Changed Over the Years – Condominium Sales
I am often asked about the condominium market in the GTA. There are really two condo markets in the GTA: those sales that are in new developments and those that are in the resale market.
What I always find incredible is that almost one in every three sales now in the GTA resale market are condominium sales (about 28% of all sales in the GTA in 2013 were of condominiums.).
Half of All Sales are now Condominiums
When we take a closer look at the City of Toronto itself (the 416 generally), the breakdown in sales between condominium and freehold homes is now about 50/50 – so half of all resale home sales in the City of Toronto in 2013 were condominiums. We are not yet Manhattan, but a condominium lifestyle is becoming more and more the norm for many families in our City.
This has also meant that there is tremendous pressure on the limited inventory in the single family home market especially south of the 401.One of the main reasons for the huge price increases we have seen in the past 2 years is that more and more people are looking for the convenience of Toronto’s fantastic downtown neighbourhoods Like Trinity -Bellwoods,Liberty Village and South Parkdale and there just simply are not enough options except for condos.
I hope you have a wonderful June,Enjoy the world cup soccer, and let me know if I can be of assistance to anyone in your circle of family and friends – I am never too busy for your referrals.