A first quarter report from real estate data firm Urbanation shows that new condo sales across the Toronto region are closing in on where they left off during the same period in 2020, before the pandemic levelled market activity.
According to the firm’s report, published today, there were 5,593 condo units sold in the first three months of the year, down four percent from a year earlier while coming in well above the 10-year average of 4,924 sales for the quarter.
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This is a marked improvement from fourth quarter new condo sales, which were down 43 percent annually and came in 22 percent under the 10-year sales average. Overall, 2020 was characterized by volatility in the new condo space, with sales plummeting in the spring and surging in the summer as a wave of pent-up demand was unleashed.
Sales fell sharply again in 2020’s final months as developers delayed project launches and uncertainty around rising infections dampened investor demand for units.
The Urbanation report said condo sales momentum swung back to downtown Toronto following the suburbs’ dominant run through 2020’s second half. In the City of Toronto, new condo sales even slightly outpaced first quarter results from a year ago, with 2,886 units sold.
“The downtown Toronto condo market turned the corner in the first quarter of the year on low borrowing costs and renewed optimism regarding the outlook, but also partly due to chain reaction after suburban home prices soared 30% over the past year and put the spotlight back on urban properties,” said Urbanation President Shaun Hildebrand in a media release.
On the pricing front, Urbanation noted that unsold units available in the Toronto region recorded a 7.7 percent increase from a year ago, hitting a record high of $1,178 per square foot.