As a professional Realtor with an emphasis on condos, I'd like to share the latest insights from Urbanation Inc., a leading source for information and analysis on the condominium market.

The Q2-2023 Condominium Market Survey results reveal some interesting trends in the Greater Toronto Area (GTA) condo market:

1) New Condo Sales: In Q2-2023, new condominium sales in the GTA increased by 118% compared to the previous quarter, but fell by 35% annually to 4,610 units. The sales were also 28% below the 10-year Q2 average of 6,370 units. The first half of 2023 saw a significant decline in sales, with 6,727 units sold, down 59% from the first half of 2022 (16,272 units) and 42% below the first half 10-year average (11,516 units), making it the slowest first six months of the year since 2013.

2) New Condo Prices: For the first time in 10 years, the average price for available new condominiums in the GTA experienced a decline. The average price per square foot decreased by 1.3% quarter-over-quarter and 2.2% year-over-year, reaching $1,411 per square foot. In response to the challenging market conditions, many projects continued to offer incentives to buyers, such as cash back/credits on closing, mortgage rate guarantees, and free or reduced parking/locker/unit upgrades.

3) Buyer Preferences: The 905 region in the GTA saw a record high 60% share of new condo sales in Q2-2023, while the former City of Toronto accounted for a record low 14% share of sales. The unsold new condo pricing in the 905 region was notably lower, with an average of $1,172 per square foot, which is 30% below the former City of Toronto average of $1,673 per square foot in the same quarter.

4) New Launch Performance: Despite 27 new projects launching for presale in Q2-2023, totaling 7,349 units, the overall performance of new launches remained luke warm. Buyers expressed concerns about the market outlook, particularly after the Bank of Canada resumed interest rate increases in June. New launch absorption increased to 47% in Q2-2023 from 37% in Q1-2023, but still fell below the 57% absorption rate in Q2-2022 and the 10-year average of 60% for new launches.

5) Supply Bottlenecks: The GTA construction industry is facing significant resource constraints, as the number of construction-starts continues to exceed the capacity to deliver new units. Over the last four quarters, construction starts reached 27,537 units, which is more than 10,000 units above the number of completions during the same period (17,117 units). Consequently, the total number of condos under construction in the GTA reached a record high of 102,448 units.

As a real estate agent, it's important to be aware of these market dynamics to help buyers and sellers make informed decisions in this changing market environment. If you have any questions or need assistance with your condo-related needs, feel free to reach out to me. I am here to provide expert guidance and support.