New Toronto Condominium Unit Sales Highest Ever in Q1

Realosophy in Toronto Real Estate News, Toronto Condos and Lofts


Urbanation

From Urbanation's Q1-2010 market overview and press release today:

Urbanation Editor
and
Executive Vice President Ben Myers said, “Q1-2010’s 5,415 new
condominium sales in the Toronto Census Metropolitan Area (CMA) were down slightly from Q4-2009’s 6,295 new
unit sales, however, Q1’s total of new units sold is still the
highest-ever number of first quarter new unit sales in the history of
the CMA.

“This year’s Q1 new unit sales were nearly six
times higher than the recession impacted Q1-2009’s new unit sales, an
astounding increase of 491 per cent year-over-year,” he added.

Average price per
square foot
(PSF) for all new units sold in the CMA was up only modestly, from $418
in
Q1-2009, to $443 in Q1-2010. The unsold units in the market are being
offered
at $509 PSF on average in the CMA.

Nearly 4,000
condominium units
started construction in Q1-2010, equaling the total during the previous
nine
months, a very encouraging sign for the health of the Toronto market.

Resale volumes also
remained
strong at 4,290 in Q1-2010, almost double the 2,225 resales in Q1-2009.
And
resale price appreciation was robust, springing from an average resale
price
per unit of $280,000 in Q1-2009, to $331,000 in Q1-2010.  There were a
record number of listings in Q1-2010 and units traded quickly, as the
average
unit took just 22 days to sell.

Said Myers,
“Underlying
market conditions including potential future interest rate increases,
new
mortgage rules and to a certain extent misinformation regarding the
implementation of the HST, were all factors that affected the increased
level
of listings in the CMA. A secondary factor was that many potential
sellers did
not list their units for sale in the wake of the last year’s recession,
despite the strong resale market over the final three quarters of 2009.”

 “However, despite the
positive market indicators, if CMA condominium builders are led to
irrational
exuberance, and overbuild beyond what the market can absorb, an
over-supply
situation could potentially re-emerge. As many as 30 projects and 7,000
units
could launch in Q2-2010, so we believe unsold supply is an indicator to
watch
closely in coming quarters,” he added.

Urbanation
is
Canada's leading condominium market research company.  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.

Realosophy Realty is an innovative Toronto real estate
brokerage that uses technology to drive neighbourhood analysis and
investment advice.
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