While Toronto condo resale market was seen to be performing well, new condos were observed to be showing signs of slight weakness, according to data from Altus Group as reported by Better Dwelling.
The faintness of the new condo apartments was characterized by more expensive prices, lower sales, and increased inventory.
Condo prices in Toronto grew significantly from last year, tracking higher to $774,759 in July. Looking closely, yearly increase were huge, up 16.5% compared to the same month in 2017.
With higher prices in the pictures, it was noted in the report how sales continued to decline. A total of 855 condo sales were logged by Altus in June. This marks a 52% decrease 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,” explained Better Dwelling.
Moreover, lower sales led to higher inventory in the city. At the end of July, 931 condo apartments were seen to be still listed in the market. This is 63.12% higher when put side by side the figures from the same month last year. Notably, Building Industry and Land Development Association (BILD) said that only “minimal” projects were launched during the month, which implied that the inventory might even increase.
BILD David Wilkes President & CEO iterated: “We are still seeing a shortfall in condo apartment inventory. 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.”
