Q2-2014 Condo Market Making a Comeback

Toronto-based condo research firm, Urbanation, is the most trusted resource for condo intelligence. Their Q2-2014 condo report states that there were 5,992 condo sales in the Census Metropolitan Area (CMA), making it the third strongest second quarter behind 2007 and 2011.

Since 2013 was slow, Urbanation’s Q2 figures show a 56 percent increase compared to the same period last year. According to Urbanation, there are 105,027 units in the preconstruction, construction, or occupancy phases - only 18,744 of which are unsold. The 12-month total is at 18,463 units, on par with the 10 year average.

“The new condo market has performed well above expectations in the first half of the year, reflecting a sharp rebound in buyer confidence,” said Urbanation’s senior vice president, Shaun Hildebrand. “While sales have heated up, prices have remained in check due to competitive supply pressures and an absence of short-term speculation on the part of buyers.”

SQ - via Tridel

Although there has been a significant jump in sales, the average sales price has still increased. The average sale price for a condo in the CMA was $554 per square foot in Q2-2014, which is a year-over-year increase of 2.8 percent.

While new condos have been performing well, the resale market has hit a real hot streak. There was a record breaking 5,238 resale sales in Q2, an increase of 12 percent compared to 2013. There were also 11,246 new listings in Q2. Since the sales-to-listings ratio reached 47 percent, Urbanation considers the condo market balanced.

We are very excited to see Toronto’s condo market thriving after a slow 2013. We can’t wait to see what the second half of the year holds!