TORONTO – May 3, 2010…Urbanation, Inc., since 1981 the leading source of information and analysis on the Toronto Census Metropolitan Area – CMA condominium market, today released its Q1-2010 market overview.
Said Urbanation Editor and Executive Vice President Ben Myers, “Q1-2010’s 5,415 new condominium sales in the CMA were down slightly from Q4-2009’s 6,295 new unit sales, however, Q1’s total of new units sold is still the highest-ever number of first quarter new unit sales in the history of the CMA.
“This year’s Q1 new unit sales were nearly six times higher than the recession impacted Q1-2009’s new unit sales, an astounding increase of 491 per cent year-over-year,” he added.
Average price per square foot (PSF) for all new units sold in the CMA was up only modestly, from $418 in Q1-2009, to $443 in Q1-2010. The unsold units in the market are being offered at $509 PSF on average in the CMA.
Nearly 4,000 condominium units started construction in Q1-2010, equaling the total during the previous nine months, a very encouraging sign for the health of the Toronto market.
Resale volumes also remained strong at 4,290 in Q1-2010, almost double the 2,225 resales in Q1-2009. And resale price appreciation was robust, springing from an average resale price per unit of $280,000 in Q1-2009, to $331,000 in Q1-2010. There were a record number of listings in Q1-2010 and units traded quickly, as the average unit took just 22 days to sell.
Said Myers, “Underlying market conditions including potential future interest rate increases, new mortgage rules and to a certain extent misinformation regarding the implementation of the HST, were all factors that affected the increased level of listings in the CMA. A secondary factor was that many potential sellers did not list their units for sale in the wake of the last year’s recession, despite the strong resale market over the final three quarters of 2009.”
“However, despite the positive market indicators, if CMA condominium builders are led to irrational exuberance, and overbuild beyond what the market can absorb, an over-supply situation could potentially re-emerge. As many as 30 projects and 7,000 units could launch in Q2-2010, so we believe unsold supply is an indicator to watch closely in coming quarters,” he added.