Figures from Urbanation show that there were 7,618 units unsold in the third quarter of 2017 after reaching a 15-year low of 6,699 in the previous quarter. Despite the increase, there were 38% fewer units than Q3 2016 and 47% fewer than the 10-year average.
Sales were down 30% year-over-year (4,577 units) in the third quarter as new projects eased following the surge in new units in the first half of 2017.
The year is still expected to set a new record for sales of new condos in the GTA with 12,000 units expected to be available in the fourth quarter with strong demand expected to push the whole-year total to 34,000, up from 27,000 for 2016.
Record demand and tightened inventory has pushed prices to an average $670 per square foot for all sold units in Q3 and remaining units up 5% quarter-over-quarter and 30% year-over-year to $816 psf.
That compares to $648 psf. for resale condos with the price declining for the first time in three and a half years as the Ontario Fair Housing Plan reduced sales.
For next year, things may be less buoyant.
“After closing out 2017 with a record year, the new condo market is poised for moderation in 2018. A more cautious approach for both developers and buyers in the coming months will help to ensure the transition to a more sustainable pace of activity is orderly”, said Shaun Hildebrand, Urbanation’s Senior Vice President.
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The unsold inventory of new condo units in the Greater Toronto Area has increased for the first time since the end of 2015.