The Canada Mortgage and Housing Corporation (CMHC) has released its Housing Market Insight Report for the Greater Toronto Area. The primary finding of the report is that the risks in condo building in Toronto seem to have been mitigated.
“Condo building activity in Toronto seems to be well-managed,” said Dana Senagama, principal, market analysis for the GTA. In spite of this encouraging information, future inventory management will be critical.”
According to the report, more than three-quarters (79%) of condo projects in the Greater Toronto Area didn’t start construction until they reached a pre-sales threshold of 70 per cent sold, and the majority of the other projects are smaller, or later phases of other developments.
Most of the unsold inventory in the GTA is in Markham or in Toronto Centre, where the condominium markets are the most active.
Read the full report here.
Toronto condominium sales were up 8.3 per cent in the last quarter of 2014 compared to the last quarter of 2013, according to the Toronto Real Estate Board. There were 4,975 transactions total.
According to Paul Etherington, the president of the Toronto Real Estate Board, “Demand for condominium apartments remained strong in the fourth quarter of 2014. While the supply of condominium apartments listed for sale grew in the fourth quarter, including a large number of newly completed units, the number of sales grew at a faster pace. Competition between buyers increased in the condo market over the past year.”
He continued, “Interest in ownership housing in the GTA, including demand from first-time buyers in the condo market, is extremely strong. The majority of households understand that a home purchase represents a quality long-term investment.”
Average selling prices for condos were also up, by 3.8 per cent to an average selling price of $367,199 over $353,799.
“Despite very strong condominium apartment completions over the last two years, we have not experienced a glut in inventory,” said Toronto Real Estate Board director of market analysis Jason Mercer. “The number of buyers has more than kept up with the number of units available for sale. This is why we continued to experience above-inflation average price growth in the condo segment.
According to the latest Condo Market Report for Q2 from the Toronto Real Estate Board, condo apartment transactions decreased by six per cent compared to the same quarter in 2012, down to 5,984 total transactions through the Toronto MLS Listings.
“The GTA condominium apartment market has been the subject of much discussion recently, due in large part to the number of new units completed over the past two years and the number of units that remain under construction,” said the president of the Toronto Real Estate Board, Dianne Usher. “With this in mind, it is important to point out that the condo market has fared quite well. Even with sales down and the number of active listings up, the average selling price has found support at current levels.”
The average sales price for condo apartments was $347,896 in the second quarter, which is an increase of 1.7 per cent.
“While active listings were up year-over-year in the second quarter, it is interesting to note that new listings were down over the same period,” said the senior manager of market analysis for the Toronto Real Estate Board, Jason Mercer. “If the number of new listings continues to drop in the second half of 2013 and the sales situation improves, we could see the pace of condo growth accelerate as market conditions tighten.”
This site is owned & operated by: Royal LePage Real Estate Services Ltd Johnston & Daniel Division,477 Mount Pleasant Road, Toronto, Ontario, M4S 2L9, 416.489.2121. The content is provided by a number of sources as referenced in the contribution list.