August 4, 2011
Yes, you read that right! Urbanation, the authoritative source on Toronto’s condo market, is predicting that 25,000 new condo units will be sold in the city in 2011.
Urbanation is also forecasting 17,000 resale transactions this year.
The news surfaced today as Urbanation released their Q2-2011 market overview.
You don’t need us to tell you those are big numbers, but we’re going to do it anyway. Whoa! Those are big numbers!
Earlier this month, when we spoke with Ben Myers, the editor and Executive VP of Urbanation, he told us he had already upped his forecast to 18,000, but he was thinking he “might have to up it further.” Well, guess what, he did just that and upped it A WHOLE LOT further!
That’s a big deal, but that’s not the only big deal that Urbantion’s report contained. According to the report, the condo market in the Toronto CMA smashed a ton of records in Q2-2011.
There were 9,455 units sold in Q2, beating the old record of 6,997 in Q2-2007. There have been 24,731 new condo sales over the past 12 months, which beats the previous record of 22,654 in Q4-2007.
And it’s not just sales that are booming, new condo construction is also at an all time high. In Q2, 39,196 new condo units were under construction in 153 projects in the Toronto CMA. This is a high water mark for the area.
Of course, when news like this comes out, there’s always going to be a chorus of detractors calling it an unsustainable bubble. This isn’t the case says Ben Myers.
“[I]t’s clear that the market is not experiencing rapid increases in pricing, which is the hallmark of a real estate bubble. The market is very healthy, as condominium resale activity remains strong, and results from our new UrbanRental report show that condominium rents have improved over the first quarter,” he explained.
If you want to learn more about Ben Myers and the Urbanation process, check out our BuzzTalk with the man himself!