Toronto’s real estate market continues to evolve, with the past year being especially interesting. Sourced from the latest report from Urbanation – Canada’s leading condominium market research company since 1981 – TheRedPin has put together 15 hard facts about Toronto’s Q4 Condo Market.
12 Hard Facts about Toronto’s Q4 Condo Market
- In the Toronto CMA there were 3,841 new condominium apartment sales in Q4-2012, an increase of 16% over the third quarter. 17,997 new units were sold in 2012.
- Toronto CMA condominium market set several records in 2012 including: construction starts (24,388), active developments (355), total active units (89,251), and total units under construction (56,866).
- The average sold index price in the Toronto CMA was $536 psf in Q4-2012 (up 5.2% annually).
- Active Toronto CMA new condominium market is 79% sold overall, down from 80% sold in Q3-2012 and 82% sold in Q4-2011, but above the ten-year average of 78%.
- “Despite concerns over the level of unsold supply in the new condominium market, the ratio of sold to unsold units has consistently been above the long-run average in recent years” – Ben Myers, Urbanation Executive Vice President.
- At the end of Q4-2012 there were just 613 completed and unsold new condominium apartment suites in the Toronto CMA.
- Overbuilding was a term cited quite often in relation to the Toronto condominium market in the second half of 2012.
- The resale condominium market suffered from a lack of supply in Q4-2012, as just 3.2% of the 227,700 units (1,285 buildings) tracked by Urbanation were listed for sale in the fourth quarter,the lowest quarterly level in over 10 years.
- Resale activity declined 14% quarterly in the Toronto CMA to 2,941 transactions. However, Sales-to-Listings ratio for Resale Properties increased quarterly to 40.2%, indicative of relatively balanced market conditions.
- “Many investors chose to hold and rent their units in 2012 rather than sell them into uncertain market conditions” – Ben Myers, Urbanation Executive Vice President.
- Of the 2,941 resale condominium apartment transactions in Q4-2012, just 0.9% of these suites were sold for less than 90% of the list price. These 27 units sold at an average price of $641,000 ($282,000 over the average Q4-2012 resale price of $359,000).
- 15,292 resale condominium apartments traded in 2012, down from the five-year average of 15,609, but above the ten-year average of 13,486.
Source: Urbanation Q4 Report