New condo sales plummeted year over year in the GTA's new condo sales market, but there are early signs of stabilization, according to a fresh Urbanation report. realestate realestatenews GTA condo realestatemarket
, just 2,360 new condo units were sold in the first quarter, the slowest start to a year since the financial crisis in Q1 2009 and a sharp drop from the record-high of 9,242 sales seen in Q1 2022.While the number of new pre-sale units brought to market fell 17% below the 10-year average, sales activity dropped 54% below the 10-year average, signalling a significant drop-off in demand.
Meanwhile, the average price psf for available new condos increased 2% year over year, to $1,434, marking the slowest pace of growth in eight years.The number of unsold new condos jumped 73% annually in Q1 2023 to 16,299 units, its highest level in seven years. Inventory has risen significantly as well — the GTA has 13.2 months of new condo supply, up from a record-low of 3.2 months in Q1 2022 and well above the 10-year average of 8.4 months of supply.
The re-sale market, which tends to act as a leading indicator for new condos, saw activity rise to its highest level in three quarters, while the average price-per-square-foot increased 1.5% from Q4 2022. As well, a number of successful new pre-sale launches were seen in April, which the consulting firm noted should lead to more projects in the coming months.
“While condo market activity in the GTA remained in a correction phase during the first quarter of 2023, buyers began to move off the sidelines more recently as interest rates stabilized,” said Shaun Hildebrand, the President of Urbanation. “The affordability advantage condominiums hold over other housing types and the high cost of renting should add some momentum to the market moving forward.”Zoe Demarco is a Staff Writer at STOREYS and was formerly the Urbanized Editor at Daily Hive. Born and raised in Toronto, she has a passion for the city's ever-changing urban landscape.
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