The frenzy in the greater Toronto area’s presale condominium market may have eased, with 4,219 units sold in the first quarter of 2018 compared to a record 9,744 units sold in the same period last year, but prices are still going up according to new data from Urbanation Inc.
The average selling price for new condo presales fell from $893 a square foot seen in the fourth quarter of 2017 to $843 a square foot so far in 2018. Prices were still up 23 per cent from the same time last year, as the average condo sold for $558,000. Increased demand for the smallest, most affordable studio-type apartments also jacked up prices 24 per cent to an average of $381,000.
In the condo resale market, volume of sales fell 31 per cent, but prices continued to grow (albeit more slowly than presale,) rising 11 per cent year over year to $661 a square foot. Urbanation attributes the significant drop in resale activity to new mortgage stress test requirements for uninsured borrowers, which took effect in 2018.
Condo construction activity is also up in the city; 6,455 units started construction in the quarter, a good start compared with an anemic 3,101 in the same period last year. That’s welcome news after 2017’s sluggish inventory delivery, which was the lowest in the past five years with only 13,513 units completed representing just 62 per cent of projections.