INDUSTRY NEWS
URBANATION
TORONTO CENSUS METROPOLITAN AREA (CMA) NEW CONDO MARKET WITNESSES OVER 21,000 SALES OVER THE PAST YEAR
TORONTO, August 3, 2010. Urbanation, Inc., the leading source of information and analysis on the Toronto Census Metropolitan Area - CMA - condominium market, today released its Q2/10 market overview.
New condominium sales of 4,991 in Q2/10 represent a decline of eight per cent from the 5,415 sold in Q1/10, and for the first time since 1994, second quarter sales declined from the first quarter. Despite the quarter-over-quarter decrease, sales during the past four quarters were near record highs.
"21,318 new condominiums sold. That's slightly fewer than the dizzy heights achieved during late 2007/early 2008," said Ben Myers, Urbanation Editor and Executive Vice President.
"When we consider the rapid sales pace of the six months prior to Q2/10, the new sales market is softening," Myers said. "Expect a slightly slower sales pace for the remaining two quarters of 2010. An annual sales volume of 16,000 to 17,000 appears to be sustainable for the Toronto CMA."
At the end of Q2/10 the 12,638 unsold units in the CMA were being offered at $529 psf, a 12 per cent annual increase. In the former City of Toronto, unsold units averaged $639 psf.
As the new market shows signs of slowing, the existing condominium market remains very strong. The resale market set a quarterly record of 5,076 sales in Q2/10 - besting the previous high of 4,854 set in Q3/09.
The record represents an 18 percent increase over Q1/10 (4,290 resales) and five per cent over the same quarter in 2009 (4,853 resales).
"While second quarter results are typically strong, these figures are encouraging for the tone of the overall resale market and especially for buyers," added Myers. "Especially considering the average time on market has increased - from 22 days in Q1/10 to 25 days in Q2/10, and quarterly CMA price growth was minimal - from $369 psf in Q1/10 to $370 psf in Q2/10."
A flush resale supply coming into the second quarter - at a record high 10,997 listings in Q1/10 - kept resale pricing in check, with the average resale end-selling price rising less than 1% this quarter to $331,000. Many of these resale listings were absorbed during the quarter, bringing the number of resale listings down to 8,714 units, which allowed the strong demand during the spring months to be met without further impacting affordability due to rising resale prices.
With almost 6,000 occupied and not yet registered units in the CMA at the end of Q2/10, and the potential for as many as 12,000 completions over the remaining quarters of 2010, it's possible the addition of that many units to the market will force resale prices to remain relatively flat.
ABOUT URBANATION
Urbanation is the leading condominium market research company in Canada. Since 1981 Urbanation has analyzed the Toronto condominium market, publishing the "industry bible" - Urbanation's Condominium Market Survey. This quarterly Report tracks new, resale, and future condominium projects. Urbanation also provides the development community with essential consulting services, which include site- and topic-specific market studies and surveys.
www.urbanation.ca
www.twitter.com/urbanation
URBANATION
TORONTO CENSUS METROPOLITAN AREA (CMA) NEW CONDO MARKET WITNESSES OVER 21,000 SALES OVER THE PAST YEAR
TORONTO, August 3, 2010. Urbanation, Inc., the leading source of information and analysis on the Toronto Census Metropolitan Area - CMA - condominium market, today released its Q2/10 market overview.
New condominium sales of 4,991 in Q2/10 represent a decline of eight per cent from the 5,415 sold in Q1/10, and for the first time since 1994, second quarter sales declined from the first quarter. Despite the quarter-over-quarter decrease, sales during the past four quarters were near record highs.
"21,318 new condominiums sold. That's slightly fewer than the dizzy heights achieved during late 2007/early 2008," said Ben Myers, Urbanation Editor and Executive Vice President.
"When we consider the rapid sales pace of the six months prior to Q2/10, the new sales market is softening," Myers said. "Expect a slightly slower sales pace for the remaining two quarters of 2010. An annual sales volume of 16,000 to 17,000 appears to be sustainable for the Toronto CMA."
At the end of Q2/10 the 12,638 unsold units in the CMA were being offered at $529 psf, a 12 per cent annual increase. In the former City of Toronto, unsold units averaged $639 psf.
As the new market shows signs of slowing, the existing condominium market remains very strong. The resale market set a quarterly record of 5,076 sales in Q2/10 - besting the previous high of 4,854 set in Q3/09.
The record represents an 18 percent increase over Q1/10 (4,290 resales) and five per cent over the same quarter in 2009 (4,853 resales).
"While second quarter results are typically strong, these figures are encouraging for the tone of the overall resale market and especially for buyers," added Myers. "Especially considering the average time on market has increased - from 22 days in Q1/10 to 25 days in Q2/10, and quarterly CMA price growth was minimal - from $369 psf in Q1/10 to $370 psf in Q2/10."
A flush resale supply coming into the second quarter - at a record high 10,997 listings in Q1/10 - kept resale pricing in check, with the average resale end-selling price rising less than 1% this quarter to $331,000. Many of these resale listings were absorbed during the quarter, bringing the number of resale listings down to 8,714 units, which allowed the strong demand during the spring months to be met without further impacting affordability due to rising resale prices.
With almost 6,000 occupied and not yet registered units in the CMA at the end of Q2/10, and the potential for as many as 12,000 completions over the remaining quarters of 2010, it's possible the addition of that many units to the market will force resale prices to remain relatively flat.
ABOUT URBANATION
Urbanation is the leading condominium market research company in Canada. Since 1981 Urbanation has analyzed the Toronto condominium market, publishing the "industry bible" - Urbanation's Condominium Market Survey. This quarterly Report tracks new, resale, and future condominium projects. Urbanation also provides the development community with essential consulting services, which include site- and topic-specific market studies and surveys.
www.urbanation.ca
www.twitter.com/urbanation
INDUSTRY NEWS
New condominium sales of 4,991 in Q2/10 represent a decline of eight per cent from the 5,415...
read more»
URBANATION
Click here to visit the leading source for data on the highrise condominium market in Toronto.
New condominium sales of 4,991 in Q2/10 represent a decline of eight per cent from the 5,415...
read more»
URBANATION
Click here to visit the leading source for data on the highrise condominium market in Toronto.
