And while some of you might say, “Maybe condo sales are going out of style”– we’ll get to that a little bit later. For now, though, some stats about recent condo sales courtesy of Urbanation.
In the third quarter of 2011, there were 6,318 new condos sold in Toronto. That’s 70 new condos everyday. Or three new condos every hour. Or…ok ok. I think you get the picture. It’s a lot of condos.
Plus, 58 per cent of these Toronto sales were realized in 33 new site openings.
The most impressive statistic, though, has to be that Urbanation predicts new condo sales will reach *drumroll please* 26,000 units in 2011. That’s right 26,000. That would destroy the previous record set in 2007, just before the recession, of 22,654.
So back to that question then…does this all seem a little too good to be true? Isn’t there some sort of saying about stuff going up and then coming down?
Well, here’s the thing. According to Ben Myers:
“With these unprecedented sales successes continuing and with the increased investor activity, there are concerns that pricing will, or is, rising too rapidly on speculative buying decisions…However, annual index price growth remains below the five-year average of 8.1 per cent, at 7.4 per cent in the new market, and equal to the five-year average in the resale market.”
And for those of you worried about these “pesky speculators” in the market. Ben Myers has something to say to that, too:
“The majority of buyers that do not intend to occupy the suite they purchased are adopting long-term investment strategies and avoiding short-term market price fluctuations resulting from potential over supply or other factors.”
So don’t despair. S’all good in the hood. Really good.