Thursday, August 5, 2010

Condo sales in Toronto drop for first time in 16 years

Steve Ladurantaye
Globe and Mail Update
New condo sales in Toronto decreased for the first time in 16 years in the second quarter, as the market cooled along with the broader housing market.
Sales of new condos have posted quarter-over-quarter sales gains since 1994, said Urbanation Inc, an information gathering company that tracks sales in the Toronto area. There were 4,991 sales in the second quarter, an eight per cent decline from the first quarter’s 5,415.
“Despite the quarter-over-quarter decrease, sales during the past four quarters were near record highs,” said Ben Myers, Urbanation’s executive vice-president. “When we consider the rapid sales pace of the six months prior to Q2/10, the new sales market is softening. Expect a slightly slower sales pace for the remaining two quarters of 2010.”
The amount of time units are sitting on the market has also increased, to 25 days in the second quarter from 22 days in the first quarter. There were 12,638 unsold units available at the end of the second quarter, an increase of 12 per cent over the same time last year.
The resale market held up far better, setting a new quarterly record of 5,076 sales, beating the previous high of 4,854 set in the third quarter of 2009. It’s an 18 per cent increase over the first quarter, and five per cent over a year ago.

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