Condo sales buck slowdown in Toronto housing market
27 Jul 2017
The housing market in Toronto may have seen a slowdown of about 37 percent in June compared to last year but that has not stopped condominium sales as they reached record highs. Of the 6,046 new home sales made in June, 91 percent were multi-family mid-rise, high-rise and stacked town homes. These sales are up 59 percent from just May. Patricia Arsenault, executive vice-president of research consulting services for Altus group states “The record number of condominium apartment sales in June was result of a perfect storm’ of factors”, “These factors include: the size-able number of units in new condo projects opened in May and June (over 8,500); demand from end-use buyers who might have preferred a single-family home but have adjusted their expectations due to lack of affordable supply; and heightened investor interest due to the rapid price increases for condo apartments in recent months.” The housing market began to see concern after the Bank of Canada raised its overnight lending rate followed by an increase in prime lending rates from 2.7 percent to 2.95 percent. Despite these changes, houses are still selling, they are just taking a little more time than what some areas may be used to.