Analytical report on the market for condominium sales in Toronto
The most recent Market Watch report November 2018 on Toronto Housing market in November 2018 shows that the market for condominiums or residential apartments is has still an increasing trend. Analytical analyzes of the report shows that in many parts of Toronto the price is rising relative to last year with two-digit numbers. For example, W05 in the western region of the city shows a 21.22% increase in average sales prices over the past year, and the central area of the C09 has grown by 18.89%.
Prices for residential apartments in areas around Toronto, such as Richmond Village, Markham, Vaughan, Brampton, and Oshawa also show increasing trends, although not as large as the city’s central areas. It seems that this trend is likely to continue by increasing of demand and prices in the central cities of the city that reduces affordability of buyers to buy an apartment in the center area of the city. Despite better affordability of apartments in further areas, the existing trend of price increase will result further increases in prices in these areas. This increase is already visible in areas such as Burlington, Milton, Halton, Oakville, Mississauga and Brampton.
These figures remember critical price increase of housing market in late 2016 and the early months of 2017 for residential homes, which soon led to a sharp fall in prices from May 2017, and many of buyers suffered big losses. However, such a downturn for the condominium market is still unlikely due to high demand and insufficient supply of new apartments in Toronto area. On the other hand, the sharp rise in the price of apartments has also been accompanied by a relatively strong increase in the cost of leasing for residential units. Despite enforcement of some new supportive regulations for tenants by the government since last year, many tenants who may need for replacing their place faced with unbelievable increase of the lease prices. This situation is more serious for new tenants. As a result, it seems that once again continuous increasing of lease prices may encourage many tenants to think about advantages off buying their own property. If it happens, we will see more increase of demand for affordable apartment units, which is currently facing shortage of supply. That means again accelerated rising of prices for small and medium size affordable units. Of course, rising of prices for apartment units may also affect price of residential houses, too.
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