Real estate sages’ predictions are right (for once): condo prices are rising at a slower pace

For months, market gurus have been predicting that condo prices would stagnate due to new mortgage regulations and a multitude of new condo towers (and many many more in the making). They were actually on point this time: over the summer, pre-construction sales (and prices) fell off, and now, for the first time since the recession, resale condos are also flattening. According to MLS figures for the third quarter, the average high-rise resale price was $334,204, only a modest rise from the $332,969 average price in the third quarter of 2011. Also, as increasing supply has moved power from sellers to buyers, a similar situation has shifted power from landlords towards tenants in the renters’ market. Average rents still rose, but only by 3.4 per cent for one-bedroom units (to $1,605) and 2.2 per cent for two-bedroom units (to $2,097). Of course, those figures only take into account units leased through MLS, which isn’t exactly the most popular avenue for renters. [Globe and Mail]