Sales drop in July amid summer slowdown, few project launches

(Source: Globe and Mail)

July’s new condo sales results are now in. Yes, they are down significantly from June but, no, they do not indicate the recession is again deepening, industry observers say. Instead the drop in sales reflects a combination of a traditional seasonal blip and a lack of new projects coming on the market this summer.

“I am still predicting we are going to see 8,000 to 8,500 new condo starts this year, which is right on track with what I have been saying all along,” says Barry Lyon, president of N. Barry Lyon Consultants Ltd., which has tracked the market and consulted on projects for almost 40 years.

“July is traditionally a slow month and usually down maybe 25 per cent from June results,” he says. “This year was no different.”

“In June, 2008, there were six new projects launched and a total of 2,148 suites came onto the market,” Mr. Myers says. “Three of them – South Beach, ÏCE and Emerald Park – were very large, multi tower projects.

“In June, 2009, only two small projects were launched – Connect Condos and Eden Park’s B tower. Both were just the next phase of existing projects and together they totalled only 248 units.”

Read Terrence Belford’s full article “Condo sales results a seasonal blip” in the Globe and Mail (September 7, 2009).

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