New condo sales in the GTA rose 11 per cent in the second quarter of 2015 over the same period last year, according to a report published today by Urbanation.
The Toronto real estate consulting firm recorded 6,297 new condo sales in the second quarter, an increase in activity that it attributed to a significant boost in sales of units already under construction or recently completed. The increase follows a 10 per cent decline year-over-year in sales recorded by the firm in the first quarter.
The second quarter increase in sales led to a 13 per cent annual decline in unsold inventory. According to the Urbanation report, there are now 17,709 unsold units across all stages of development in the GTA.
Meanwhile, completed and unabsorbed inventory in the GTA declined to 1,425 units at the end of June, down from a high of 1,647 units at the end of March.
Unsold inventory levels in the Toronto new condo market are a source of concern for market-watchers. Last month, a report by TD Bank’s economics team classified newly completed and unabsorbed units as a “medium-high” risk to the GTA market, the second highest classification on the bank’s risk scale.
“The Toronto condo market remains highly absorbed as demand is showing strength across the board. From higher-end product in the core to more entry-level units in the 905, sales and rentals are trending higher,” said Shaun Hildebrand, Urbanation’s Senior Vice President, in a press release.
On the price side, Urbanation measured a moderate level of price appreciation in the second quarter. The average price per square foot for new condos saw two per cent annual growth, moving up to $556. Annual resale price growth picked up speed considerably, rising 6.8 per cent to an average of $453 per square foot as sales in the second quarter rose 21 per cent to 6,443 units.
According to BuzzBuzzHome’s Market Snapshot tool, which measures list prices for new construction homes, the average list price per square foot for a new condo in Toronto-proper is $613.07 in the first week of August. The median list price for a new Toronto condo is $400,990 and there are 22,235 new units available for sale across all stages of development.