Photo: James Bombales
As the GTA experienced a 22 per cent drop in new condo units brought to market in the first quarter, sales also sustained a year-over-year decline of 10 per cent. According to Urbanation’s latest report, that decline in new units was even more dramatic in the City of Toronto, where new condo stock fell 58 per cent from Q1-2014.
Still, absorption rates remained quite high with less available product. The real estate data company says that as of the end of the first quarter, 84 per cent of the 106,056 units in actively marketed developments were sold, a record high for total absorptions for new condos in the region.
“Underlying market conditions for new and resale condos have tightened considerably, which should quell concerns of over-building” said Shaun Hildebrand, Urbanation’s Senior Vice President.
“Record levels of completions are being offset by a very limited turnover of units listed for resale and a reduced number of new condo project openings, supporting a steady level of price appreciation.”
New condos sold in the first quarter averaged $562 per square foot, up 2 per cent from the same time in 2014. For the resale market in the GTA, prices grew by 5 per cent to an average of $431 per square foot. That means an average-sized unit of 849 square feet costs $386,000. Resales and total listings were both 14 per cent in the first quarter.
How does that compare to the most current listing data? Using BuzzBuzzHome’s market snapshot tool for Toronto, we found the average price per square foot for a new condo in Toronto-proper was $629.88 as of the first week of May. The median price for a new condo listing is $404,900, though prices differ depending on the size of the unit. Among the 26,821 new condos currently on the market, the majority, or 53.7 per cent, are one-bedroom units. The median size for a new, one-bedroom listing is 582 square feet while its median price is $351,932.