August 4, 2010
Everyone who’s interested in real estate in Toronto must have heard about the crazy boom in the past year. And according to Urbanation Inc., over the past year sales have heated up with more than 21,000 new units selling in the Toronto Census Metropolitan Area. WOW! That’s a lot of condos…
New condominium sales of 4,991 in Q2/10 represent a decline of eight per cent fromt he 5,415 sold in Q1/10, and for the first time since 1994, second quarter sales declined from the first quarter.
But…come on. You can’t expect numbers like that to keep going up. One decline since 1994, or since I was a youthful 6 years old, really isn’t bad.
And besides, that’s just for new condominiums. The resale condominium market is still on the up and up. The resale market set a quarterly record of 5,076 sales in Q2/10– besting the previous high of 4,854 set in Q3/09. The record represents an 18 per cent increase over Q1/10 (4,290 resales) and five per cent over the same quarter in 2009 (4,853 resales).
Despite this increase in demand, though, prices didn’t increase that much. Why? How? HUH? Well, it’s the usual answer– the market was flooded with listings! A flush resale supply coming into Q2/10 — at a record high 10,997 listings in Q1/10 — kept resale pricing in check, with the average resale end-selling price rising less than one per cent this quarter to $331,000.
So that’s some good news for buyers in Toronto– not great news or anything. But they’re at least being thrown a bone after the later winter bidding wars and the seemingly endless price increases.