The Toronto condo market – which many argue has been over-built – recorded a drop in inventory and an increase in demand in the first quarter of this year.
According to Urbanation’s Q1 market results, a total of 5,615 condo units were sold in the GTA during the first quarter, up 32% year-over-year and just shy of the first quarter record of 5,680 set in 2012.
“The inventory shortage experienced for low-rise housing has spread into the high-rise segment," Shaun Hildebrand,
Urbanation’s Senior Vice President. "More and more buyers priced out of the single-family home market are looking for alternatives in the condo market, providing a clear opportunity for new development.”
Increased demand and a supply shortage forced unsold inventory to drop 16% year-over-year to 15,587 units. The decrease was even more pronounced in the city of Toronto, which saw its unsold inventory fall by 22%.
Supply also tightened, with 86% of units in development being sold; pre-construction projects were 70% sold; recently completed buildings were 96% sold.
There was also good news for investors looking to sell.
Resale activity increased by 21% year-over-year and total listings declined by 5%.
“In a sign that price pressures are starting to build, projects under construction increased their asking prices for unsold units by 8% from last year to $618 psf, including a 14% jump in the former City of Toronto,” Urbanation said in a release.
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