The Toronto condo resale market is hot, but the new construction market is cooling, according to the Q2-2012 report released today by Urbanation.
“In the Toronto Census Metropolitan Area there were 5,050 condominium apartment resale transactions in Q2-2012, an increase of 30% over the first quarter, and 9% over Q2-2012,” the press release accompanying the report stated. Meanwhile, there were 4,769 new condo sales in Q2-2012, down 21 per cent from the first quarter record high of 6,070.
Here’s a few more key findings pulled from the press release:
- Through six months in the Toronto CMA new condo market, there were 10,839 sales, the second highest year ever
- The average resale unit sold for $407 psf, up 4% annually from $391 psf from Q2-2011
- There were 4,769 Q2-2012 new construction sales, down 21 per cent from Q1-2012 and 50 per cent from Q2-2011
- The average resale unit traded in Q2-2012 was 910 sf for $370,000 compared to the former City of Toronto, which averaged 832 sf for $448,000
- Meanwhile in the new condo market, the average unit in Q2-2012 was 751 sf with an average price of $395,000
- There were 343 active projects and 87,386 units in the Toronto CMA condo market, a market record
- 52,695 units (196 projects) are under construction, also a market high
The report also found that 88 per cent of the units under construction are sold, 79 per cent of the active market overall. However, unsold supply set a market high at 18,123 in Q2-2012.
“We expect fewer launches in the second half of 2012 than the latter half of last year as developers would like to see some of the unsold supply absorbed before bringing their projects to market,” explained Ben Myers, Editor and Executive VP at Urbanation in the press release.
Where will the market head in the remainder of 2012? You’ll just have to wait for Urbanation Q3 market report to find out…