Condo prices in Toronto jumped 10.1% year-over-year to $569,812 in the fourth quarter of 2018, along with the rate of appreciation for most other types of homes throughout the Greater Toronto Area (GTA).
The increase is slightly above the rise in aggregate price for a home in the city, which went up 8.8% over the same period to $901,280, according to the house price survey released by Royal LePage on Friday.
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“Despite sluggish sales in the city’s core, sellers are often able to receive their asking price because of the region’s lack of inventory,” said Chris Slightham, president, Royal LePage Signature Realty.
“While market conditions have improved greatly for buyers, Toronto will be a seller’s market until inventory levels increase.”
As for the GTA, the aggregate price of a home increased 3.4% year-over-year in the fourth quarter of 2018 to $843,641.
When broken out by housing type, the survey shows the median price of a two-storey home in the GTA increased 2.9% year-over-year to $984,097, while the median price of a bungalow fell 0.3% year-over-year to $802,785.
Meanwhile, the median price of a condominium within the GTA saw significant price appreciation, increasing 9% to $520,033.
Slightham added that the GTA’s healthy economy, population growth and good employment are supportive of the overall health of the real estate market.
“While the new OSFI mortgage rules contributed to dampening real estate activity in the Greater Toronto Area, the city’s economic fundamentals remain supportive of the long term health of the real estate market.”
Across the country:
On a national level, the survey found prices continued to climb during the fourth quarter, climbing 4% year-over-year to $631,223.
Here’s a breakdown of prices by housing type:
- The median price of a two-storey home rose 3.9% to $745,007
- The median price of a bungalow climbed 1.5% to $516,950
- The median price of a condominium increased 7.2% to $447,915
“The invisible hand that guides our complex economy hit the real estate reset button in 2018 and that is a good thing,” said Phil Soper, president and CEO, Royal LePage.
“Major market home price inflation through much of the decade had led to dangerous overheating in our most populous regions. Government regulatory intervention and rising interest rates, when combined with property price overshooting, triggered the correctional cycle we find ourselves working through today.”