Google+ FANNY LEE & THE TEAM :Own Homes. Grow Wealth. Pass It On.: Urbanation Q1 2012 Report on New Condos Market

Wednesday, May 9, 2012

Urbanation Q1 2012 Report on New Condos Market

"What do you think of the condo market?"  The question many have raised in the past months highlighta an underlying concern.

Urbanation just reported 6,070 new condo sales in Toronto CMA during Q1 2012, the highest Q1 since this data being tracked.  30% of these sales came from 4 projects: INDX, Massey Tower, Casa II and PSV in Mississauga.  Other key data pertaining the condo market :-

  • record high active projects and units : 338 and 84,698
  • average sold price index per square foot was $519, 8.1% increase from a year ago
  • City of Toronto sold index price was $585 psf; $656 psf for Downtown Core
  • market average price is $393,000 for a 757 sf unit
  • 3,888 resales in Q1 2012 vs 3,952 in Q1 2011
  • resale price index dropped from $400 psf to $396 (-1%) year to year, 1st drop since 2009 Q1
  • 15,554 unsold units (18% of active market: 5 year average being 20%) as of the end of Q1 2012

The projected high level of unsold inventory coupled with potential loan tightening induce cautions.

"With the market being much larger now, the question is: Is this higher level of unsold inventory the new reality?  Or is it a sign that the market has reached its peak?  We'll have to see,"  Ben Myers, Urbanation E.V.P and Editor, captured the current uncertainty of the condo market.

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