The market for condominiums in the Greater Toronto Area showed continued momentum in the third quarter of 2019.
Figures from Urbanation show that Q3 2019 condo apartment sales stabilized at 4,703 units. That’s 1% higher than a year earlier and follows a strong second quarter to make a year-to-date increase of 21% from the same period of 2018 with 16,873 units.
New launch absorption remained consistent with the previous quarter with 63% of pre-sale units launched in the quarter having sold. Unsold inventory was 13% below the 10-year average at 12,822 units.
Prices were pushed higher by lower inventory; the index value for available units rose 6% year-over-year in Q3 to $1,036 psf. Price appreciation for new condos converged closer to the rate of increase for resale prices at 4% in Q3, supported by 12% growth in resale activity.
There was a 48% drop in the number of new units launched for pre-sale (2,556) in the third quarter. That saw the absorption rate of existing inventory in previously launched projects reaching 21%, the highest level since the market peak in early 2017.
On an absolute basis, the 3,101 units sold out of existing inventory in the third quarter represented 73% year-over-year growth in volume and came within 575 sales of the record set three years ago.
2019 among best on record
Urbanation expects the final quarter of 2019 to maintain momentum with strong existing sales combining with new launches which have increased in the past month.
The firm expects 2019 to rank as the third or fourth highest year on record for new GTA condo sales.