New condominium sales of 4,991 in Q2/10 represent a decline of eight per cent from the 5,415 sold in Q1/10, and for the first time since 1994, second quarter sales declined from the first quarter. Despite the quarter-over-quarter decrease, sales during the past four quarters were near record highs. The 21,318 new condominiums sold in 2010 is actually slightly fewer than the furious pace achieved in late 2007/early 2008.
At the end of Q2/10 the 12,638 unsold units in the CMA were being offered at $529 psf, a 12 per cent annual increase. In the former City of Toronto, unsold units averaged $639 psf.
As the new market shows signs of slowing, the existing condominium market remains very strong. The resale market set a quarterly record of 5,076 sales in Q2/10 – besting the previous high of 4,854 set in Q3/09.
The record represents an 18 percent increase over Q1/10 (4,290 resales) and five per cent over the same quarter in 2009 (4,853 resales).
A flush resale supply coming into the second quarter — at a record high 10,997 listings in Q1/10 — kept resale pricing in check, with the average resale end-selling price rising less than 1% this quarter to $331,000. Many of these resale listings were absorbed during the quarter, bringing the number of resale listings down to 8,714 units, which allowed the strong demand during the spring months to be met without further impacting affordability due to rising resale prices.
With almost 6,000 occupied and not yet registered units in the CMA at the end of Q2/10, and the potential for as many as 12,000 completions over the remaining quarters of 2010, it’s possible the addition of that many units to the market will force resale prices to remain relatively flat.
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