Condo Prices Flat but Show Market’s Resiliency
Prices for resale condominium apartments in the Greater Toronto Area bucked the overall downward trend in the housing market during the last quarter of 2022, with the average selling price staying in line with that of Q4 2021.
While condo market conditions have become more balanced over the past year, there has been enough demand relative to supply to support selling prices thanks to the greater affordability of this market segment, which serves as a key entry point for many first-time buyers and investors. That explains why the average Q4 2022 selling price was $710,520, slightly higher than the Q4 2021 average of $710,246.
While Toronto-proper saw a 0.2% dip in the average price — a loss of just $1,500 — it increased in Halton region (Burlington, Halton Hills, Milton and Oakville) by just over 4% or almost $30,000.
Overall, sales were down 54% year-over-year to 3,582 from 7,804 units, as were new listings, though to a much lesser extent of 14%.
Fourth quarter sales of new condos were also down 58% in 2022 from Q4 2021, with new launches falling 21% year-over-year. Unsold inventory rose 30% between Q4 2021 and Q4 2022, to a 14-quarter high of 15,015 units.
To combat these losses, new condos rolled out a string of perk to incentivize buyers, including zero development levies, discounted or free parking and/or locker, lower deposit amounts, price discounts on select units, cash back/credits at closing and rental guarantees.
Only time will reveal whether these tactics will stop the downward slide in new condo sales.