Condo Sales Activity in Toronto Drops to Lowest Since 2009 While Prices Increase by 8%
The coronavirus pandemic has distorted housing markets across Canada, causing interest rates to drop to record-low levels, selling activity to diminish, and prices to increase.
According to a recent Condominium Market Survey released by Urbanation Inc, the second quarter of 2020 saw new condo sales in the Greater Toronto Area fall by 85% to only 1,176 units – the lowest number of sales since 2009. Although sales activity has been on the downside, the prices of new condos have been steadily increasing, with an 8% rise on a year-over-year basis, to an average of $867 per-square-foot.
Urbanation anticipates the supply of new condos to improve, given that construction has resumed over the summer following a period of mandated shutdowns due to the coronavirus pandemic. New condo construction has increased by 45% on a year-over-year basis, as the total number of new units under construction nearly reached a record-high of 78,212 units.
Information for this briefing was found via Bloomberg and Urbanation Inc. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.