The Toronto condo resale market might be doing well, but new condos are having a hiccup. Altus Group numbers, obtained from Building Industry and Land Development Association (BILD), show the new condo market in Greater Toronto is rapidly cooling. Generally speaking, new condo apartments saw higher prices, plummeting sales, and soaring inventory.
New Toronto Condo Prices Are Up Over 16%
The price of a new condo stalled for the month, but still made a huge climb from last year. The price of a new condo reached $774,759 in July, virtually flat from the month before. Annual gains were still very lofty though, with prices up a massive 16.5% compared to the same month last year. The monthly price change isn’t all that surprising, considering July is one of the slower months. The annual change is unusually high.
New Toronto Condo Sales Are Down Over 52%
Despite higher prices, sales continued to fall for condo apartments. Altus is reporting 855 condo sales in July, down a massive 52% compared to the same month last year. That’s on top of the 20% decline we saw last year, so for those keeping track – we’re down 62% from 2016. Higher prices, and higher interest rates are likely behind the sales decline.
Greater Toronto New Condo Sales
Total condo apartment sales in Greater Toronto for July, by region.
Source: Altus Group. Better Dwelling.
Toronto New Condo Inventory Jumps Over 63%
Lower sales levels helped to boost inventory in Toronto. There were 9,931 condo apartments available for sale at the end of July, up 63.12% compared to the same month last year. July is typically a slow month, but BILD noted only “minimal” projects were launched last month. This likely helped keep inventory lower than we would have seen, but that won’t last for long.
David Wilkes, President & CEO of BILD said “We are still seeing a shortfall in condo apartment inventory.” Further adding, “given the current pace of sales, we should have nine to twelve months’ worth of inventory, but we only have five. We expect that more condo apartment product will become available in the fall.”
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