After years of big launches and record highs, the Toronto condo market is showing signs of slower, steadier behaviour. According to Urbanation’s latest report, the city saw fewer sales – and fewer condos hitting the market – during the second quarter of the year.
A total of 3,903 new condos were sold in this past quarter, a tally that’s 18 per cent lower than the second quarter of 2012. However, that drop is in line with the number of openings during this period, with new openings about 1,000 units below the typical second quarter volume. Sales were higher during the first quarter of the year, though the second quarter was still in line with historic averages.
“The market is regaining its footing coming out of an extremely volatile sales environment during the past two years,” said Shaun Hildebrand, Urbanation’s Senior Vice President, in the news release.
“Developers have been cautious, but the success of some key projects this year and the solid performances of the resale and rental condo markets in the second quarter should improve confidence.”
The numbers of unsold units in active projects moved up to 19,394 units, with the share of all active units (now totaling 92,398) that were sold holding steady at 79 per cent. The bulk of unsold inventory (11,265 units) is in projects still in their pre-construction sales phase.
The price of a new condo in the city hasn’t seen any dramatic changes: the average index price went up by 2.6 per cent in the second quarter to $539 per square foot, a rise that’s in keeping with the 2.5 per cent bump recorded in the first quarter. The average unsold index price was the same as a year ago at $566 per square feet.
For the resale market, the total amount of second quarter sales came to 4,689 units, for a 7 per cent drop from a year ago, but still in line with historic second quarter averages. After seeing small decreases in the last two quarters, the average price growth of a resale condo went up with a 1.5 per cent boost. The average index resale price reached a record $413 per square feet, or $376,000 for the average 910 square foot unit. The sales-to-listings ratio increased to its highest level in a year at 46 per cent as growth in total listings remained slow despite over 8,500 units being added to market in the first half of 2013.