Urbanation, the leading source for condo market intelligence in the Greater Toronto Area, released its third quarter results for 2018, reporting some record highs.
New condo sales in the GTA increased 4% in the third quarter, reaching 4,738, making this the third highest third quarter in the last decade. While it was a good quarter, year-to-date sales fell 46% compared to the record high of 25,839 sales set last year.
Unsold inventory of new condos increased 2% compared to the previous quarter and is 22% higher than the same period last year with 9,927 units available. This is still 33% lower than the 10-year average and only amounts to 5.2 months of supply.
“The condominium market has performed exceptionally well during its transition from an overheated 2017,” says Shaun Hildebrand, President of Urbanation. “Low supply and stabilized demand should continue to provide structural support for prices. However, signs of a slower pace of price growth ahead from factors including rising interest rates and higher completions should be factored into decision making with respect to purchasing investment units.”
The average selling price for the third quarter was $745 per square foot, which is 11% higher than last year. The asking price for unsold inventory jumped 19% to $972 per square foot. Out of new condos that launched in the third quarter, the average price was $745,416, which is a year-over-year increase of 33%.
The average size of a new condo unit launched during the third quarter was 714 square feet, which puts the average price per square foot at $1,044 – this is the first time we’ve seen the average price above $1,000 for new launches.
Another record high was set in the construction department; there were 8,150 new condo starts in the GTA during the third quarter, bringing the total number of condo units under construction to 67,581 in 236 buildings. On average, 95% of these units are pre-sold.
In the resale condo market, sales bumped up 2% to 5,253; this is the first annual increase since the first quarter of 2017. The average resale price jumped 6.5% to $690 per square foot, or just over $577,000 based on the average unit size of 837 square feet.
The winter is typically a slower period for new condo launches, but we’re eager to see what the fourth quarter holds!