The supply of new condos in the Greater Toronto Area hit the lowest level since 2010 in the second quarter of 2016.
A report from Urbanation shows that sales of condos in the GTA increased 26 per cent year-over-year to 7,731.
However, the total inventory declined by the same percentage to 13,528, a decade-low of 6.8 months of supply.
New project launches were down 9 per cent from the previous year to 5,106 units.
“With demand for condos in the GTA pressing forward strongly, new projects are being challenged to enter the market in greater volume. Should current conditions persist, price pressures for high-rise units can be expected to build, particularly as low-rise housing remains afflicted by record-low supply” said Shaun Hildebrand, Urbanation’s Senior Vice President.
Prices increased 2 per cent year-over-year to $582 per square foot across the GTA but in the core they were up 4 per cent to $662 psf. In the City of Toronto prices were up 7 per cent to 724 psf. Resale prices increased 10 per cent to $498 psf.