Toronto new condo sales with record low sales
In a recent article by Globe and Mail, it is reported that the total amount of new condo purchases in the Greater Toronto Area (GTA) totalled just 633 in August. This is the lowest number of purchases made in the month of August in over a decade. This number is a 18% year-over-year decline over the 772 sold in August 2012, and a far outcry from the 1,923 sold in August 2011.
Finance Minister Jim Flaherty has expressed concern in the past that the amount of new-build condos in the far out-paced the demand for new condos. Such a trend could ultimately result in a crash, according to the Finance Minister.
The total number of new homes are also at historical lows with 16,775 so far this calendar year (2013). This is a 43% decline than the previous 10-year average. A cause for this drop in new home buys could be as a result of the growing asking prices of new homes.
Currently, there is a variance of $222,149 between new and old homes, which is itself an all-time record. In stark contrast, the variance between 2004-2011 stood at about $75,000 between new and old homes. Home buyers may feel this difference between new-and-old homes is too large for their tastes.
According to RealNet, the total number of homes unsold in the GTA stands at 28,575 for this year.