2nd Quarter results were recently released with overall sales up 10.4% over the same time last year, squashing speculation that the condo market was on a continual decline. It’s no surprise that we’ve seen an increase in condo sales based on how single family homes have skyrocketed in price. Condos remain a more affordable option for small families and those looking to cash in on their homes and downsize to a more effortless lifestyle.
Stats-wise, the average selling price for condos in Q2 was up by 5.5% year-over-year to $367,010. In the City of Toronto, which accounted for 71% of total sales, the average selling price was $392,739, representing an increase of 5.3%. In Mississauga, condo sales were up 4.8% with an average price of $279,902 representing an increase of 5.1% year-over-year.
Have you noticed a surge in construction cranes throughout the city? Many new condo projects have popped up contributed by a healthy increase in the pre-construction condo market, with a total of 5,992 new condominium apartments sold in Toronto during Q2, which was the third highest volume of activity for a second quarter behind 2011 and 2007 and a 56% year-over-year increase from a post-recession low in 2013. The 12-month total for new condo sales reached 18,463 — directly in line with the 10-year annual average. Price growth remained consistent coming in at 2.8% annually to an average index price level of $554 per square foot in Q2. Pricing for unsold units continued to hold steady, growing by less than one percent to an average of $570 psf.
So what does this mean for new condos that are nearing completion? We should still see enough demand to sustain the price growth over inflation over the second half of the year. This coupled with how hot the Toronto condo rental market is reinforces the fact that buying condos are a sound investment after all.