Condo sales in the Greater Toronto Area were down 46 per cent year-over-year in the third-quarter (Q3) of 2022, according to new data from the Toronto Regional Real Estate Board (TRREB).
There were close to 4,200 condo sales reported through MLS in Q3, compared to nearly 7,800 over the same period last year. TRREB says the number of new listings was also down in Q3 by 16 per cent to upwards of 10,200. The average selling price was up slightly— approximately $720,000 compared to $690,000 in 2021.
“The pace of condo price growth has moderated as higher borrowing costs have hampered affordability since the spring,” says Jason Mercer, chief market analyst, TRREB. “However, the impact has been mitigated to a certain degree by a dip in listings over the same period. A shorter supply of condos will likely provide some support for prices in the months ahead.”
The Building Industry and Land Development (BILD) noted a considerable slowdown in the GTA’s new condo market on Monday.
In September, nearly 300 new units were sold, a decrease of 89 per cent year-over-year and 84 per cent below the 10-year average, according to Altus Group (BILD’s source for market intelligence).
While condo sales flounder, the GTA’s rental market is going strong; double-digit rent increases continued into Q3 as many wannabe buyers take the wait-and-see approach. Competition for condo rentals intensified, and negotiated rents have spiked, according to data from TRREB.
Upwards of 13,300 condo rental transactions were reported in the GTA through MLS, down 17 per cent compared to Q3 2021. The number of rental units listed was also down by a greater annual rate of more than 25 per cent.
“Investor-owned condos have been an important component of the rental stock for more than a decade,” says TRREB President Kevin Crigger in a press release. “However, the decline in rental listings over the past year is a further warning sign to policymakers that the overall lack of housing in the region extends to the rental market as well.”
The average one-bedroom condominium apartment rent in Q3 2022 was up by 20.4 per cent year-over-year to nearly $2,500. A two-bedroom apartment is renting for close to $3,200, up by 14.5 per cent compared to the same period in 2021.