“Underlying market conditions for new and resale condos have tightened considerably, which should quell concerns of over-building” Shaun Hildebrand, Urbanation’s Senior Vice President said in an official release. “Record levels of completions are being offset by a very limited turnover of units listed for resale and a reduced number of new condo project openings, supporting a steady level of price appreciation.”
Along with a sales decline, the number of new units brought to market dropped 22 per cent.
“Steady absorption of units in existing projects brought the level of unsold inventory in active development down by 10 per cent from a year ago to a total of 17,488 units,” the release states. “Pre-construction unsold inventory fell by 16 per cent to 8,781 units, while the total number of units under construction that are unsold declined by 9 per cent to 7,059 units (out of 51,289).”
Toronto is thought to be one of Canada’s most overvalued markets, with the average home price coming in at $635,932 according to recent Toronto Real Estate Board figures.
Condos continue to be the only option for many Torontonians. And although sales may be down, prices continue to skyrocket, with the average price of a condo unit in the 416 coming in at $407,612 in April.
Over 21,000 units were completed in the past year and unoccupied units jumped 49 per cent to 1,648.
Still, according to Urbanation: “In total, 84 per cent of the 106,056 units in actively marketed developments were sold at the end of the first quarter, representing a record high for total absorptions in the GTA new condo market.”
During the first quarter of 2015, 4,432 new condo units were sold across the GTA, marking a 10 per cent year-over-year decrease, according to Urbanation.