TORONTO – May 06, 2014: Urbanation Inc., the leading source of information and analysis on the Toronto condominium market since 1981, released its Q1-2014 market results today.
A total of 5,140 new condominium apartments were sold in the Toronto CMA during Q1-2014, 5% higher than the five-year average for first quarter activity and a full recovery from the 2,728 units sold in Q1-2013. The latest data brings the 12-month total for new condo sales to 16,377 — still below the decade average of approximately 18,000 units.
“Toronto’s new condo market has proven resilient in early 2014, although activity remained very centralized and some new projects were likely pulled forward into the first part of the year. As sales pick up in the outer 416 and 905 markets, overall volumes will be able to sustain this recent pace” said Shaun Hildebrand, Urbanation’s Senior Vice President.
The unsold inventory within all projects in active development declined by 5% during the quarter to 18,293 units — its lowest level since 2012. The reduction in supply and shift in sales to relatively higher priced projects in the former City of Toronto helped push the average selling price for all units in development up by 3% annually to $549 psf. Asking prices for unsold units edged up for the first time since mid-2012 to an average of $574 psf.
“Things continue to move in the right direction. Buyers are gaining confidence and developers remain focused on unwinding inventories and offering competitively positioned new product to the market. Certainly the performance of the resale market has helped to create an overall sense of stability,” added Hildebrand.
Resale condominium apartment sales totaled 3,482 units in Q1-2014, up 9% from a year ago. Resale market conditions tightened with 13% fewer listings during the quarter compared to Q1-2013 (Urbanation measures resale activity in projects that are completed and registered). Condo resale prices grew by 5.1% to an average of $414 psf. The resale market has held steady while over 16,000 units have registered over the past 12 months, including 4,152 units in Q1-2014. The resale universe is set to expand further with first quarter completions of 5,009 units.