Real estate experts say condo supply on the decline in Milton
Published February 4, 2022 at 11:20 am
Real estate experts say condo supply is on the decline in Milton and the Greater Toronto Area (GTA), according to an article on Strata.ca.
Last year, many prospective home buyers were forced to turn away from the increasingly high prices of condos in the GTA due to competitive pricing and bidding wars.
This year, however, prospective home buyers could be facing a different issue. According to data from Strata.ca, condo inventory in the GTA has dropped 63 per cent in the last 12 months.
While Milton experienced an inventory peak back in March 2021, supply has been on the decline ever since, according to Milan Mitrovic, Realtor at Strata.ca.
“Since the start of the COVID-19 pandemic, Milton saw its condo inventory peak in March 2021 with 84 new listings hitting the market that month. But supply has been on the decline ever since. For example, there were just 29 new listings recorded in January. That’s a 65 per cent drop since Milton’s peak 10 months ago,” said Mitrovic.
Mitrovic says that the decline is also causing an impact on overall condo values in the town.
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“It appears this inventory decline is impacting overall condo values in Milton. In January 2021, homebuyers were paying an average of $612 per square foot. But as of last month, the average cost of a condo was $788 per square foot; an increase of 29 per cent compared to one year prior.”
As of January, the average price of a condo in the Town of Milton was $727,260, with the average cost per square foot being $719.39.
Last month, Strata.ca data also revealed that the appreciation rate for condos in Milton during the past 12 months was +26.5 per cent.
While overall condo values have increased by 16 per cent over the past 12 months, condos still remain the more affordable option for prospective home buyers despite low inventory, according to Strata.ca.
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