Urbanation released its Toronto CMA Q4-2011 market overview today to much fanfare.
According to the report, there were 7,226 new sales in Q4-2011, the highest of any fourth quarter on record. This huge number helped the Toronto CMA reach a record high of 28,190 new condominium apartment sales in 2011.
The new record shattered the previous high of 22,654 sales in 2007 by a whopping 24 per cent.
We perused the Urbanation release this morning and found plenty of other tantalizing facts and figures, including what we should expect from the market in 2012.
Here’s the rundown of the choice cuts:
- Ben Myers, Urbanation’s executive VP and editor, notes that the more successful the Toronto condo market is, the more reports surface warning of oversupply or price corrections
- Urbanation points to speculative purchasing, over-leveraging and herd behaviour as risk factors for a market correction
- Toronto CMA has seen very few resale project experience a “dump” of units at registration, ie. purchasers are likely long term, hold-and-rent investors
- According to Urbanation’s 2011 industry participants survey, the biggest concern going into 2012 is going to be pricing, are unit prices rising too quickly?
- Urbanation explains that the unsold index price inflation was moderate in the new condo market at 5.1 per cent annually to $557 psf, while the former City of Toronto saw prices rise just 2.5 per cent from $646 psf to $662 psf
- Unsold supply increased by 13 per cent in Q4-2011, this is the largest quarter-over-quarter jump for the Toronto CMA since Q2-2008
Ben Myers notes that the “key statistical indicators that Urbanation reviews quarterly in our publication are still positive, seller’s market conditions in the resale market and strong demand for condominiums in areas that have not previously supported high-rise densities.”
Myers adds that he anticipates the market will “remain strong in 2012, with over 20,000 new condominium sales.”
Who are these Urbanation guys anyway? Urbanation has been tracking Toronto high-rise condo market since 1981. They monitor the market’s performance and provide economic and statistical analysis to their clients.
We’re liking the record smashing 2011 numbers as well as the reasonably optimistic view of 2012. Nothing like some good news to start the week off right!