Frustrated by the rising prices in single-family homes, hungry buyers are using the condo to get on the property market.
“The new condo market has performed well above expectations in the first half of the year, reflecting a sharp rebound in buyer confidence, a number of highly attractive new openings and a variety of incentives for existing inventory,” Shaun Hildebrand, senior vice president of Urbanation said in an official release. “While sales have heated up, prices have remained in check due to competitive supply pressures and an absence of short-term speculation on the part of buyers.”
Almost 6,000 condo apartments changed hands in the GTA during the second quarter of 2014, marking the third highest volume for a second quarter trailing just 2007 and 2011. The figure also represents a 56 per cent year-over-year jump from the low experienced in 2013. The 12 month total for new condo sales fell in line with the 10-year average, reaching 18,463.
Meanwhile, out of the 105,027 units in pre-construction, under construction or in the occupancy phases, 18,744 remain unsold. This figure is above historical averages but is down three per cent year-over-year, according to Urbanation.
“Resale condominium apartment sales hit a record high of 5,238 units in Q2-2014, up 12 per cent from a year ago,” the release states. “Listings also reached a new high of 11,246 listings, growing by a slightly slower pace than sales at 10 per cent.”
Based on such figures, many experts believe investors may be motivated to capitalize on this booming interest and sell out.
As more buyers flock to the condo market, will some homeowners capitalize on the momentum and cash out?