Search
Generic filters
Filter by Categories
All Condos
Ask Andrew
Hi-Rise (West) Inc.
Insights
New Condos by City
Ajax
Aurora
Barrie
Beamsville
Bolton
Bracebridge
Bradford
Brampton
Burlington
Caledon
Calgary
Collingwood
Dundalk
Halton Hills
Hamilton
Kingston
Kitchener
London
Markham
Thornhill
Milton
Mississauga
Cooksville
Port Credit
Square One
Montreal
Newmarket
Niagara Falls
Oakville
Oshawa
Ottawa
Pickering
Richmond Hill
Smithville
Stayner
The Blue Mountains
Toronto
Amesbury
Baldwin Village
Bayview Village
Beaches
Bedford Park
Briar Hill
Brockton Village
Cabbagetown
Canary District
Casa Loma
Chinatown
Church & Carlton
Church & Wellesley
Church St. Corridor
Clanton Park
Corktown
Corso Italia
Danforth Village
Davenport
Davisville Village
Distillery District
Don Mills
Downsview
Downtown
East Junction
East York
Eglinton East
Eglinton West
Entertainment District
Eringate
Etobicoke
Fashion District
Financial District
Flemingdon Park
Forest Hill
Garden District
Greektown
Harbourfront
High Park
Kensington Market
King East
King West
Leaside
Leslieville
Liberty Village
Little Italy
Little Portugal
Long Branch
Mimico
Moss Park
Newtonbrook
North York
Oakridge
Old Town
Ottawa
Parkdale
Regent Park
River District
Rosedale
Rustic
Scarborough
St. Clair West
St. James Town
St. Lawrence
Stockyards
Summerhill
Swansea
Tam O'Shanter-Sullivan
The Annex
The Junction
The Kingsway
The Queensway
Victoria Park Village
Wallace Emerson
Waterfront
Weston
Willowdale
Yonge & Bloor
Yonge and College
Yonge and Dundas
Yonge and Eglinton
Yonge and Lawrence
Yonge and Richmond
Yonge and Sheppard
Yonge and St. Clair
Yorkdale
Yorkville
Vaughan
Maple
Thornhill
Waterloo
Whitby
Whitchurch-Stouffville
Whitechurch-Stouffville
New Condos by Deposit
10% Before Occupancy
15% Before Occupany
5% Before Occupancy
New Condos by Developer
Acorn Developments
Adi Development Group
Allegra Homes
Alterra Developments
Altree Developments
Amacon
Amexon Development
Andrin Homes
Angil Development
Aoyuan International
Aragon Properties Ltd
Armour Heights Developments
Artlife Developments
Ashcroft Homes
Aspen Ridge Homes
Balder Corporation
Ballymore Homes
Bazis Inc
Benvenuto Group
Biddington Homes
Blackdoor Development Company
Block Developments
Bloomfield Homes
Branthaven Homes
Briarwood Development Group
Brixen Developments
Broccolini
Brookfield Residential
BSäR
Camrost-Felcorp
Canderel Residential
Capital Developments
Carlyle Communities
Carriage Gate Homes
Carttera Private Equities
Castlebridge Development Group
Castleview Developments
CentreCourt
Centrestone Urban Developments Inc
Centreville Homes
Chestnut Hill Developments
Choice Properties REIT
Choo Communities
Cityscape Development Corporation
Cityzen
Clifton Blake
Collecdev
Concert Properties
Concord Adex
Condoman Developments Inc
Conservatory Group
Constantine Enterprises Inc.
Consulate Development Group
Context
Core Development Group
Cortel Group
Craft Development
Creek Village Inc.
Cresford Developments
Crown Communities
Crystal Homes
Cystal Glen Homes
Daniels
Davpart
DC&F Corp
Devron
Diamante Development
Diamond Kilmer Developments
Diamondcorp
Distrikt Developments
Doornekamp Construction Ltd
Dormer Homes
Downing Street Group
Dundee Kilmer
Eden Oak
Edenshaw
ELAD Canada
EllisDon Capital
Emblem Developments
Empire Communities
Evans Planning Inc
Fernbrook Homes
Fieldgate Urban
Fifth Avenue Homes
First Avenue Properties
First Capital
Flato Developments
Forest Hill Homes
FRAM + Slokker
Freed
G Group Developments
Gairloch
Gary Silverberg
Gemterra Developments Corporation
Genesis Homes
Georgian International
Globizen Developments
Gordon Wells Ltd.
Graywood
Great Gulf
Greatwise Developments
Greenfield Quality Builders
Greenland Group
Greenpark Group
Greenwin
Greybrook Realty
H&W Developments
Harhay Developments
Harlo Capital
Haven Developments
Homes by DeSantis
Hullmark
Hyde Park Homes
Icon Homes
IN8 Developments
Investissement SM Immobilier
JCF Capital
Kaleido Corporation
Kalovida Canada Inc
Kaneff Corporation
KBIJ Corporation
Kingdom Development
KingSett Capital
Kroonenberg Group
Lalu Canada
Lamb Developments
Lancaster Homes
Lanterra
Latch Developments
Laurier Homes
LCH Developments
Les Entreprises QMD
Liberty Development
Liberty Hamlet Inc
Lifestyle Custom Homes
Lifetime Developments
Limen
LJM Developments
Madison Group
Malibu Investments
Manorgate Homes
Marlin Spring Developments
Marydel Homes
Mattamy Homes
Medallion Capital Group
Menkes
Metropia
Metroview
Minto
Mizrahi Developments
MOD Developments
Nascent Developments
New Horizon Development Group
NOCO Development Company
Norstar Group of Companies
North American Development Group
North Drive
North Edge Properties
Northam Realty Advisors
Nova Ridge Development Partners
Old Stonehenge
ONE Properties
One Urban
Options Development
Oxford Properties
Parallax Development Corporation
Patry Inc Developments
Pemberton Group
Phantom
Phelps Homes
Pinnacle International
Platinum Vista
Plaza
Podium Developments
Primont Homes
ProWinko
QuadReal
Queensgate Homes
RAJACan Developments Inc.
ReBuilt Construction
Reids Heritage Homes
Reserve
RioCan
Rise Developments
Riverking Developments
Rosehaven Homes
Rosewater Developments
Rowntree Enterprises
Royalpark Homes
Royalton Homes
Saxon Developments
Scholar Properties Ltd
Sequoia Grove Homes
Seven Numbers Development
Sherwood Homes
Shiplake Properties Limited
Sierra Building Group
SilverCreek Communities
Slate
Solmar Development Group
Solotex Corporation
St. Regis Homes
St. Thomas Developments
State Building Group
Sundance Homes
Sunny Communities
TAS
Tercot Communities
The Remington Group
The Rockport Group
The Rose Corporation
The Sher Corporation
Tiffany Park Homes
Time Group Corp.
Treasure Hill
Tribute Communities
Tricar
Tricon Developments
Tridel
Triumphant Group
Trolleybus Urban Development Inc
Trulife Developments
United Lands
UrbanCapital
Urbane Communities
VANDYK
VanMar Developments
Vermilion Developments
Vintage Park Homes
Wabash Heights Developments Inc
Westbank Corp
Westbank Corp. and Allied Properties
Westdale
Zancor Homes
New Condos by Occupancy Year
2019
2020
2021
2022
2023
2024
TBA
News
Podcast
True Condos Approved
Uncategorized
Videos
Filter by content type
Taxonomy terms

Price of New Condos Holding Strong Despite Plummeting Sales

 

[**CHART REMOVED DUE TO COPYRIGHT CLAIM BY REALNET CANADA INC.**]

The final sales figures for new condos from Realnet are in for the December and the year 2008. In short, prices are still going up, while sales have dropped off significantly. [Note: these numbers are for new condos. For resale condos, see my previous posts for more stats on the downtown condo market.]In 2007, over 23,210 new condos were sold in Toronto (GTA). A record year-by a long shot. In 2008, 15,239 units were sold, representing a 34% decrease in the number of sales.

Taking a look at just the month of December, sales are down an astounding 81% year over year. In December 2007, 1024 units were sold versus 198 in December 2008 (GTA).

Yet despite the number of sales falling off a cliff, prices for the month of December year-over-year are actually up over 10% for high-rise condos. This is pretty much the exact opposite of what we have seen in the resale market where average selling prices are down about 10-11% for downtown condos.ÂÂÂ

[**CHART REMOVED DUE TO COPYRIGHT CLAIM BY REALNET CANADA INC.**]

ÂÂÂ

How can this be? Unsold inventory is climbing in the new condo market just as it is in the resale market. Shouldn’t the weight of all this inventory put downward pressure on prices? The answer of course is yes, but most developers are not yet facing dire circumstances where there is any need to reduce prices.

Developers have one tool in their arsenal that individual consumers in the resale market do not: they can reduce supply at any time, thereby easing the downward pressure on prices. Very few new developments will be introduced to the Toronto market in 2009. Most that were planned have been placed on the back burner. Developers will be focusing on selling the units they currently have in the pipeline, getting financing to build, and completing construction as quickly as possible.

That being said, whereas 6 months ago there was absolutely no negotiating the list prices of new condos, my personal experience of late suggests discounts of $5,000-$10,000 off of 1 bedroom or 1 bedroom + den units or $15,000-$20,000 off of 2 bedroom units can be fairly easily negotiated at most new developments.

Below are two more interesting charts, one showing total figures for new home sales in the GTA and the other shows the monthly new home sales for the past few years broken up by high-rise (condo) and low-rise (homes).

  [ **CHART REMOVED DUE TO COPYRIGHT CLAIM BY REALNET CANADA INC.**]

What are your thoughts? I always appreciate your feedback. Leave me a comment below or send me an email via my contact page.

All stats  from Realnet. Full report download: Realnet New Homes Market Report December 2008 **REPORT REMOVED DUE TO COPYRIGHT CLAIM BY REALNET CANADA INC.**

Tags