Developers appear to be a little less eager to scoop up land in the Toronto area to build condos on, reports The Globe and Mail.

If that keeps up, it would be good news for those economists and market watchers who believe that too many condos are going up in the country’s most populous city (in the last year the central bank has highlighted the potential risks that the rising supply of condos poses to Canada’s housing market and broader economy).

The price that developers paid for land to build condos on softened by 4 per cent in the first three months of this year, to $55 per square foot, according to RealNet Canada Inc. (the price was closer to $30 per square foot in 2005 and 2006).

The total volume of residential land (for both condos and houses) that was bought during the first quarter of this year fell to $539-million, the first sign of a retreat after last year’s rally.

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