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Research firm Urbanation has released the results of its Q1-2014 analysis of the Toronto condominium market, and new figures point to regained strength in the market. A total of 5,140 new condominium units were sold in Toronto during Q1-2014, representing a 5% increase from the five-year average for first quarter activity, as well as a full recovery from the 2,728 condominiums sold during Q1-2013. The latest data brings the 12-month total for new condo sales to 16,377, compared to the decade average of approximately 18,000 units.
“Toronto’s new condo market has proven resilient in early 2014, although activity remained very centralized and some new projects were likely pulled forward into the first part of the year. As sales pick up in the outer 416 and 905 markets, overall volumes will be able to sustain this recent pace” said Shaun Hildebrand, Urbanation’s Senior Vice President.
Unsold inventory from all projects in active development has declined by 5% during the quarter to 18,293 units, marking the lowest level since 2012. A reduction in supply and the growing trend of higher priced luxury units in Toronto helped to push average selling prices up by 3% annually to $549 per-square-foot. Average asking prices for unsold units also saw their first boost since mid-2012, rising to an average of $574 per-square-foot.
“Things continue to move in the right direction. Buyers are gaining confidence and developers remain focused on unwinding inventories and offering competitively positioned new product to the market. Certainly the performance of the resale market has helped to create an overall sense of stability,” added Hildebrand.
Resale condominium apartment sales in Q1-2014 totaled 3,482 units, representing a 9% increase from last year's figures. The resale market saw 13% fewer listings during the first quarter compared to Q1-2013, while condo resale prices grew by 5.1% to an average of $414 per-square-foot. The resale market remains steady with over 16,000 units having registered over the past 12 months, including 4,152 units in Q1-2014. The resale market is expected to expand further with first quarter completions of 5,009 units.
These figures apply not just to home buyers, but industry professionals as well. Earlier today, the Toronto Real Estate Board and Greater Toronto REALTORS announced that April saw a reported 1.8 per cent year-over-year increase in sales through the Toronto MLS system. Realtors experienced a slight increase in sales activity during April 2014, with 9,706 transactions, compared to 9,535 in April 2013.
"April marked the beginning of the spring market, during which time we generally see the highest monthly sales totals in a given year. Despite the persistent shortage of listings, a substantial number of GTA residents were able to come to terms on a home that met their needs. However, sales levels would have been higher, but for the lack of supply," said Greater Toronto REALTORS President Dianne Usher.
Average prices saw an increase of 10.1% in April 2014 now standing at an average of $577,898, compared to the April 2013 average of $524,868. "Price growth for the GTA as a whole was driven by the single-detached, semi-detached and townhouse market segments in the City of Toronto. So far this year, there has been no relief on the listings front for these home types in many neighbourhoods in Toronto and surrounding regions. Until we see a marked and sustained increase in listings, we should expect to see the annual rate of price growth above the long-term norm," said Jason Mercer, the Toronto Real Estate Board's Senior Manager of Market Analysis.
