TORONTO – February 2, 2015: Urbanation Inc., the leading source of information and analysis on the Toronto condominium market since 1981, released its Q4 and annual 2014 market results today.
A total of 21,605 new condominium apartments were sold across the Greater Toronto Area during 2014, representing the third best year for the market behind 2011 and 2007 and a 51% rebound from a 10-year low in 2013. Sales in the fourth quarter increased 25% year-over-year to 5,510 units.
Inventory levels in active development projects were reduced by 10% during the year to a total of 17,972 unsold units. Measured against absorptions, the level of supply on the market fell to 10 months by the end of 2014, down from 16.5 months a year earlier and marking a return to balanced conditions.
A record 20,809 condo apartment units were completed in 2014, bringing down the under construction count to 52,446 units from a high of close to 59,000 units a year ago. Remaining units under construction were 86% pre-sold at the end of the year. An additional 28,447 units were in pre-construction projects, of which 69% were pre-sold. Standing builder-held inventory increased to 1,550 units from 1,020 units a year ago.
“After taking a break in 2013, new condo buyers were enticed back into the market as pricing and incentives became more competitive across a greater selection of available units. The strengthening resale market and tight rental conditions, combined with lowered expectations for interest rates, should keep the new condo market humming in 2015,” said Shaun Hildebrand, Urbanation’s Senior Vice President.
The index for average selling prices reached $560 psf in the fourth quarter, up 3.6% year-over-year, the strongest rate of growth in two years. Pricing for unsold units grew at an annual pace of 2.5% to an average of $579 psf.
On the resale front, sales of condo apartments grew by 14% in 2014 to reach a record high 17,819 units. Average prices were up 3.8% year-over-year in the fourth quarter to an average of $431 psf, or $389,000. Condo rental apartment results recently reported by Urbanation also show a record amount of activity, with the number of units rented in 2014 rising 15% to a total of 22,765, while rents grew by 1% annually in Q4 to an average of $2.39 psf, or $1,816.