Toronto Real Estate Board Condominium Commentary for Q2 2011

Second Quarter 2011 Toronto CMA Condominium Apartment Completions (Annualized, 12-Month Moving Average)Resale Condo Market Tightened in Q2, but More Supply Coming 20,000 18,000The resale condominium apartment market tightened in the Greater Toronto 16,000Area since the Fall of 2010. This tightening was in line with a broader trend 14,000 12,000in the existing home market, where listings through the end of the second 10,000quarter were in short supply compared to a year ago. Condo sales, at 8,000 6,0006,721, were up by almost 0.5 per cent in the second quarter, while active 4,000 2,000listings were down by 13 per cent to 5,641 at the end of June. With more 0competition between condo buyers, it was no surprise that the year-over-year rate of growth for the median selling price accelerated to over 10 percent by the end of the quarter. Source: CMHC; TREB AdjustmentThe supply situation will likely improve in the second half of 2011 and into Condominium Apartment Sales-to-Active Listings Ratio and2012. Following a large spike in condo apartment completions in the Median Price Growth (All Areas)second quarter (most notably in June), total completions through the first six 70% Annual Median Price Change (Right Scale) 25% Annual Median Price Growth 60% Sales-to-Active Listings Ratio (Left Scale) 20% Sales-to-Active Listings ratiomonths of the year, at 10,238, were up by 65 per cent compared to the 50% 15%same period in 2010. Generally speaking, increased completions of new 40% 10%condo apartments leads to increased listings in the resale market. Many of 30% 5%these listings will come from investors who purchased one or more units at 20% 0%the pre-construction stage of development and who will now be looking to 10% -5%take advantage of an increase in value during the construction period. 0% -10%More choice in the condo apartment market will result in more balancedmarket conditions and a moderation in the annual rate of price growth to amore sustainable pace over the long term. Source: Toronto Real Estate Board Written By: Jason Mercer TREB Senior Manager of Market Analysis. jmercer@trebnet.com

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Toronto Real Estate Board Condominium Commentary for Q2 2011

by Richard Silver on Aug 11, 2011

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Toronto Real Estate Board Condominium Commentary for Q2 2011 — Presentation Transcript