10 October 2014
Ken Ramsay

Demand Turns Attention to Condominiums

In the first three quarters of 2014, sales are up almost 11% from last year, with over 8 000 homes sold in the GTA. Prices are up 8.5% for the same period, and it is looking like prices will climb towards a record. Funny enough, one of the strongest sectors for sales is in one that last year seemed to be facing downhill.

With the current average price of a detached home in Toronto sitting at $951,792, many buyers (especially mellenials) are turning towards condos. In the past, the demand for condominiums has been low due to over-development. However, with house sales on the rise, and the slowing down of condo development, the demand has increased significantly. According to TREB, condo sales have increased by 20.2% from September 2013.

As the sales in the condominium sector increases, the development will have to gear up once again, which means this slow period of construction will likely be temporary. However, it is allowing for the scales to be balanced after a few years of over-development and low demand. The increase in sales and demand will take care of the previous condo boom's over supply. 

Toronto condo boom ends for now

Cranes interrupting the skyline to keep up with Toronto's growth rates (Photo Pawel Dwulit/The Canadian Press)