Resale condo prices rise as sellers hold firm to asking prices

In September, prices rose 0.8% MoM despite a drop in transactions.

Despite slower sales, prices of resale condos continued to increase in September, rising 0.8% MoM. 

The increase, however, was “somewhat flattish,” said PropNex, adding that slower transaction volume in September weighed on price growth. 

OrangeTee, for its part, said prices likely rose for a second consecutive month as most sellers are holding firm to their asking prices since the “replacement cost of a new home is high and inflationary pressures remain elevated.” 

According to Huttons, the magnitude of price gains in August in September have “slowed less than 1%.”

“From Feb to May 2023, the price gains were at least 1% per month…The higher for longer interest rates and resistance from buyers may have contributed to the slower price gains,” Huttons said.

Given high-interest rates, Huttons believe price gains will be capped at around 8% in 2023.