The unsold inventory of new condo units in the Greater Toronto Area has increased for the first time since the end of 2015.
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.
Are you looking to invest in property? If you like, we can get one of our mortgage experts to tell you exactly how much you can afford to borrow, which is the best mortgage for you or how much they could save you right now if you have an existing mortgage. Click here to get help choosing the best mortgage rate
More market watch: