New dwelling gross sales in Toronto are falling, however costs are nonetheless rising: survey

Gross sales of recent condominiums within the Better Toronto Space fell within the second quarter of 2022 as costs climbed to file highs in April, Could and June.

Knowledge collected in a latest market analysis examine by Urbanation Inc. confirmed that 6,792 items had been offered in Q2, down 19 % from the primary quarter and down 24 % from the identical interval final yr.

On the similar time, costs for these new items rose to a historic $1,453 per sq. foot, which the agency mentioned was partly the results of elevated stock within the metropolis’s costlier tasks.

“The brand new housing market is more likely to proceed to gradual within the close to time period from final yr’s file, as pre-sale consumers train warning and builders delay new openings, specializing in ending tasks already underway,” Urbanization President Sean Hildebrand mentioned in press launch issued on Tuesday.

And people excessive costs aren’t anticipated to return anytime quickly, one thing Urbanation attributes to the variety of potential renters out there.

“Energy within the rental market and a shift in demand towards extra inexpensive possession choices ought to present assist for condominium exercise because the market works by means of the consequences of upper rates of interest,” Hildebrand mentioned.

That is backed up by one other examine launched by Urbanation final month that discovered Toronto rents rose at their “quickest tempo on file” within the second quarter — up 5.9 % from the primary quarter of 2022 and 16.7 % in comparison with the earlier yr.

Final week, RBC launched a report suggesting {that a} “historic” housing correction is underway throughout the board and that pricier markets like Ontario and BC are more likely to be the “epicenter” of the downturn amid greater rates of interest, rising building prices and labor shortages. energy.

Expired GTA apartment listings for the month of June present that the market is already feeling the pinch. In line with Strata, a Toronto-based actual property platform, canceled listings throughout Toronto are up 643 % since January.

The truth is, Urabanation mentioned about 11,700 items remained on the desk in Q2, up 36 % from the earlier quarter.

The slowdown can be felt within the building market.

Urbanation mentioned that to cope with the downturn, some builders are delaying or canceling their plans to launch altogether — a call they are saying will see 10,000 pre-sale items constructed this yr alone.

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