Urbanation. The authoritative source on the Toronto condominium market.
Since 1981, Urbanation Inc. has been actively tracking Toronto’s highrise condominium market. From projects in the planning stages, to new projects in the sales and construction phases, to completed projects trading in the resale market – Urbanation monitors the market’s performance, continuously collecting data and providing economic and statistical analysis to its clients with consummate accuracy.
In this issue
A total of 3,049 new condominium apartments sold in the Toronto CMA during Q3-2013, down 8% from a year ago and approximately 25% lower than typical third quarter volumes over the past decade. The pace of recovery towards more normal sales levels has remained measured coming off of a recordbreaking performance during late 2010 to early 2012.
New Condominium Market
A slow quarter for new openings (2,557 units) helped bring unsold inventory down for the first time in a year to 18,814 units. Pricing continued to adjust in accordance with market conditions, with the average sold index recording its slowest annual growth in eight years at 2% to $540 psf, and unsold index prices down by 1.5% annually to $565 psf.
The Resale Condominium Market
Resale condominium apartment transactions have completely shrugged off the downturn that followed the introduction of tighter qualifying rules for insured mortgages in mid-2012, growing by 23% in Q3-2013 from a year ago to 4,207 units (above the Q3 five year average). This has helped to keep prices steady, growing by 1.4% year-over-year in the third quarter even in the face of rising supply from the addition of 16,000 newly registered units over the past four quarters.
Future Condominium Market
While potential buyers may be concerned about the record-breaking number of units under construction, which reached just under 60,000 units in Q3-2013, a moderation in construction volumes is on the horizon. As the tail end of projects opened during the peak for pre-construction sales in 2011 and early 2012 soon begin digging, construction starts will slow while completions continue to move higher.
New openings for August 22, 2013: