Toronto Condo Sales Drop 17% in First Quarter
Well here’s news for anyone hoping that the Toronto condo craze would continue (was there anyone?) While we reported this morning that Canadian home sales were up in March, and that the GTA was one area that saw improvement, their condo market still has a long way to go. Or, it’s already going in the right direction, depending on how you look at it.
According to the Toronto Real Estate Board, sales on Toronto condos fell by a massive 17 per cent during the first quarter. Prices also slid, although by a much lesser degree, falling from an average of $332,846 to $325,776, a total drop of 0.5 per cent.
Ann Hannah, president of TREB, says that this might be a sign of a cooling condo market to come, especially when you consider that condo listings also fell by a rate of 5 per cent.
“Buyers benefited from a substantial amount of choice in the condo market in the first quarter, especially in comparison to low-rise home types. This being said, the fact that new condo listings were down in the first quarter suggests that the market may becoming tighter moving forward,” she said.
And Jason Mercer, TREB’s senior manager of market analysis, says that not only is this slight slowdown to be expected, with the amount of condos currently crowding the market, but it’s also all a matter of perspective. He doesn’t believe that Toronto condos will remain in this slump for very long; and he also points out that while the first quarter may not have been great, the market is already seeing signs of a comeback, as March was the best month within that quarter.
“With months of inventory high from a historic perspective, it makes sense that the average selling price for a condo is lower over the past two quarters. However, March results were much more positive compared to the first quarter as a whole, with the average condo selling price up by two per cent annually for the GTA,” Mercer says.
So, is this Toronto continuing on its downward trend until it eventually plateaus? Or do you think this is really positive news for the city, as it may seem that we’re having a little bit of a comeback after mortgage rules brought everything to a near screeching halt last year?