Ten thousand condos to be delayed this year amid market shift: Urbanation

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Ten thousand condos to be delayed this year amid market shift: Urbanation

TORONTO – Urbanation Inc. expects almost 10,000 Greater Toronto Area condo units to be delayed this year as increasing mortgage rates weigh on home sales.

The condo data firm says it estimated about 35,000 new condo units would launch for presales in the GTA at the start of the year.

Close to 16,000 units launched instead during that time period and just 10,000 more are expected through the rest of the year.

Condo towers dot the Toronto skyline as a pedestrian makes his way on Thursday January 28, 2021. Urbanation Inc. expects 10,000 Greater Toronto Area condo units to be shelved this year as increasing mortgage rates weigh on home sales. THE CANADIAN PRESS/Frank Gunn

Urbanation says this calculation leaves almost 10,000 units delayed and is a sign of an overall market slowdown now extending into the pre-construction market.

The firm says new condo sales in the GTA totalled 6,792 units in the second quarter, down 19 per cent from the first quarter and 24 per cent year-over-year.

Last quarter’s figures remain above the 10-year average of 6,302 sales.

This report by The Canadian Press was first published Aug. 2, 2022.

Credit: Ten thousand condos to be delayed this year amid market shift: Urbanation