Photo: Dylan Passmore/Flickr
Though new condo sales skyrocketed in the fourth quarter of 2013, the total sales for the year saw a marked decline compared to 2012.
According to Urbanation’s latest numbers, a total of 4,299 new condos were sold in Q4-2013, up 12 per cent from the same time last year. It was also the best quarterly tally for sales since the second quarter of 2012 (Tweet this).
However, when it comes to condo sales activity for the entire year, 2013’s rocky start had an effect on the totals. Urbanation recorded 13,797 sales for the entire year, a 22 per cent drop compared to 2012 (Tweet this). The declines in 2013 were also magnified by the record sales volumes recorded in the first part of 2012.
The five-year annual average of 19,090 sales remained above the longer-term 10-year average of 17,727 sales per year.
“The market displayed noticeable improvement in the final months of the year. The adjustments made by the industry throughout 2013 to make projects more competitive have begun to pay off,” said Shaun Hildebrand, Urbanation’s Senior Vice President, in the news release.
“This momentum is expected to help usher in more new projects during the first half of 2014 and boost up sales.”
The average price for sold units in development grew by 1.3 per cent, year-over-year in the fourth quarter of 2013, the slowest pace of growth since 2005. Average pricing now sits at $543 per square foot. Prices for unsold units declined by 0.9 per cent last year to an average of $563 per square foot. Resale prices rose by two per cent in 2013 to $418 per square foot.
In the resale condo market, 15,698 units changed hands last year, up 2.7 per cent from 2012. Rental condo transactions saw meteoric growth last year, rising by 28 per cent to a total of 19,628 units. In other words, rental transactions outpaced resale transactions for the second year in a row (Tweet this).
With the flurry of condo rental activity, rents grew by an average of 4.2 per cent in 2013, reaching $2.37 per square foot in the fourth quarter.