Mar 5 | Posted by Barry Cohen

While the housing market in the GTA has remained strong and steady with the average selling price continuing to climb, the condo market stayed somewhat flat.  Recent statistics show that this segment of the market is bouncing back and in 2014 condo sales in the GTA were at their third highest level ever just behind sales records set in 2011 and 2007.  

In 2014, 52,500 new condos were under construction in 198 new projects across the GTA.  An additional 28,447 units are now in the pre-construction phase, and 69 percent of these are pre-sold.  Last year 20,809 condos were completed with a pre-sell rate of 86 percent.  In the last quarter of 2014 alone, the average selling price of a new condo reached $560 per square foot, the strongest rate of growth recorded in two years and up 3.6 percent over 2013.  

In the most sought after condo market in the downtown core prices soared to $716 per square foot last year, which is just slightly below the $725 per square foot record set in 2012, just before the slump in 2013.

Even the resale condo market showed renewed strength with sales up 14 percent last year to a record 17,819 units.  Resale prices were also up by 3.8 percent over 2013 prices to an average of $431 per square foot or $389,000 average selling price. This is partially due to the influx of first-time buyers into the condo market as they found themselves priced out of the low-rise single-family home market across the GTA.

Condo rental prices were also up and investor interest in Toronto’s condo market remained strong.

Developers are looking to 2015 with cautious optimism so you can expect to see fewer new projects being launched this year, despite interest rates remaining low and the anticipated strengthening of the Ontario economy.

It is expected that there will be a few new trends taking place in 2015 with more mid-rise, family-style projects being launched.  In fact about 50 buildings are already under construction in the City of Toronto alone that range from four to 11 storeys.   These buildings accounted for more than 1,000 condo sales in 2014.  Developers are also constructing more two bedroom units, and units with built-in rental units or in-law suites.

If you are interested in buying or selling a condo in the GTA, now is the time to get moving.  I would be happy to meet with you and provide you with professional advice and an accurate evaluation of your properties worth in today’s market.  If you are looking to purchase a condo as a home or investment, I can give you expert advice on expected rental income and long-term prospects.