The first month of the year can always bring unexpected market conditions. Historically January represents a slower real estate market with fewer sales and lower prices than other months; this, however, has changed over the past few years with January developing into a very active month for sales. January 2018 witnessed some fantastic results in the upper end of the condo market despite a lack of inventory that left many potential buyers out in the cold.
The average sale price for condominiums that sold for over one million dollar threshold in Downtown Toronto (C01/C02/C08/C09) was just shy of $1,800,000, which represents the third highest average in the past twelve months. The most significant change we saw in January 2018 vs January 2017 was the amount of time it took these properties to trade. In January 2017 it took an average of 54 days for $1,000,000+ properties to sell, whereas in 2018 that number dropped significantly to just 24 days. This rapid decline in the days on the market is attributed to the fewer number of listings available on the market driving up competition for properties and making buyers quick to act. In January 2017 there were 90 condominium units listed for sale above one million dollars, and in January 2018 which only had 24 new listings above the one million dollar mark.
Luxury condo sales above $1,000,000 are representing a larger market share so far this year. 25 condominium units sold in January achieved over One Million Dollar sale prices. These twenty-five sales represented a 7% of the total number of sales which was significantly higher than last year when $1,000,000+ Condos accounted for just 4% of the total sales. We are seeing more sales of smaller suites that are breaking the million dollar threshold, in January a total of 12% of the luxury condo sales were for suites under 1,000 square feet. This percentage increase is due to the rising value of smaller properties in prime locations as well as a limited number of larger suites coming up for sale.
We expect that we will continue to see pricing increase and competition intensify as we head into the spring unless a significant amount of new inventory is introduced to the market to help satisfy the demand from buyers.
In January the highest price luxury condo sale took place for a suite at the highly-exclusive 155 Cumberland Street. Situated in the heart of Yorkville this building is home to just 15 spacious properties of which many feature significant outdoor space. Suite 1101 which listed at $4,980,000 sold in only two days over asking at $5,050,000. Spanning over 2,700 square feet of interior space plus an additional 1,400 square feet of terrace space the sale also attained the highest price sale per square foot in January coming to over $1,850 per foot.
Prepared by Dylan Donovan and Kristen Duern
Chestnut Park Real Estate
An Affiliate of Christie’s International Real Estate
Published: February 6th, 2018
*All figures based on reported sales from the Toronto Real Estate Board.