TORONTO – July 25, 2014: Urbanation Inc., the leading source of information and analysis on the Toronto condominium market since 1981, released its Q2-2014 market results today.
A total of 5,992 new condominium apartments were sold in the Toronto CMA during Q2-2014, representing the third highest volume of activity for a second quarter behind 2011 and 2007 and a 56% year-over-year increase from a post-recession low in 2013. The 12-month total for new condo sales reached 18,463 — directly in line with the 10-year annual average.
Price growth remained consistent with recent quarters, coming in at 2.8% annually to an average index price level of $554 psf in Q2. Pricing for unsold units continued to hold steady, growing by less than one percent to an average of $570 psf.
“The new condo market has performed well above expectations in the first half of the year, reflecting a sharp rebound in buyer confidence, a number of highly attractive new openings and a variety of incentives for existing inventory” said Shaun Hildebrand, Urbanation’s Senior Vice President.
“While sales have heated up, prices have remained in check due to competitive supply pressures and an absence of short-term speculation on the part of buyers” added Hildebrand.
The industry reached a new milestone during the second quarter by surpassing the 100,000 unit mark for projects in active development. Out of the 105,027 units in the pre-construction, under construction and occupancy phases, 18,744 units were unsold — above historical averages but down 3% from a year earlier. The share of total units sold reached a 10-year high of 82%.
Resale condominium apartment sales hit a record high of 5,238 units in Q2-2014, up 12% from a year ago. Listings also reached a new high of 11,246 listings, growing by a slightly slower pace than sales at 10%. As a result, resale market conditions tightened with the sales-to-listings ratio rising to 47% — just below the 50% boundary between a balanced and sellers’ market. Prices for resale condos grew by 3.4% year-over-year to an average of $427 psf, also a record high.
Source: urbanation Inc.