Toronto new condo sales took a nose-dive in the first quarter of 2013, according to condominium market research company Urbanation.

A total of 2,728 new condo apartments were sold in the first three months of 2013, marking a 29 per cent decrease from the last quarter of 2012, and a 55 per cent decrease from the first quarter of 2012. The average price index increased 2.5 per cent year-over-year in Q1, well under the 6.4 per cent annual average over the past 10 years.

Urbanation Senior Vice President Shaun Hildebrand said a drop in sales had been anticipated.

Given the sales numbers we saw in 2011 and up until the early part of 2012, which were on fire, that type of momentum had to give,” he told the Toronto Star.

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  • Calgary: 3-bedroom house

    <strong>$1.08 million:</strong> Located in the trendy Altadore neighbourhood of Calgary, this as-yet-unbuilt modernist house features views of the downtown core as well as a personal elevator. Source: Keller Williams Realty

  • Calgary: 3-bedroom house

    <strong>$1.08 million:</strong> Located in the trendy Altadore neighbourhood of Calgary, this as-yet-unbuilt modernist house features views of the downtown core as well as a personal elevator. Source: Keller Williams Realty

  • Calgary: 3-bedroom house

    <strong>$1.08 million:</strong> Located in the trendy Altadore neighbourhood of Calgary, this as-yet-unbuilt modernist house features views of the downtown core as well as a personal elevator. Source: Keller Williams Realty

  • Toronto: 1-bedroom condo

    <strong>$988,000:</strong> Located in the posh Residences of the Ritz Carlton, in the heart of Toronto, this condo features one of only a handful of private terraces in the entire building. Source: Sotheby's International

  • Toronto: 1-bedroom condo

    <strong>$988,000:</strong> Located in the posh Residences of the Ritz Carlton, in the heart of Toronto, this condo features one of only a handful of private terraces in the entire building. Source: Sotheby's International

  • Toronto: 1-bedroom condo

    <strong>$988,000:</strong> Located in the posh Residences of the Ritz Carlton, in the heart of Toronto, this condo features one of only a handful of private terraces in the entire building. Source: Sotheby's International

  • Montreal: 4-bedroom rowhouse

    <strong>$998,000:</strong> This historic townhouse in the wealthy enclave of Westmount is "of historic interest," according to the realtor, and features its original glass doors and marble panels at the entrance. Source: Sotheby's International

  • Montreal: 4-bedroom rowhouse

    <strong>$998,000:</strong> This historic townhouse in the wealthy enclave of Westmount is "of historic interest," according to the realtor, and features its original glass doors and marble panels at the entrance. Source: Sotheby's International

  • Montreal: 4-bedroom rowhouse

    <strong>$998,000:</strong> This historic townhouse in the wealthy enclave of Westmount is "of historic interest," according to the realtor, and features its original glass doors and marble panels at the entrance. Source: Sotheby's International

  • West Vancouver: 1-bedroom condo

    <strong>$985,000:</strong> The real estate agent boasts that this property offers a "spectacular 180 degree view of the city, Lions Gate Bridge, Stanley Park, Kitsilano, Point Grey and beyond to Vancouver Island." Source: Angell Hasman Realty

  • West Vancouver: 1-bedroom condo

    <strong>$985,000:</strong> The real estate agent boasts that this property offers a "spectacular 180 degree view of the city, Lions Gate Bridge, Stanley Park, Kitsilano, Point Grey and beyond to Vancouver Island." Source: Angell Hasman Realty

  • West Vancouver: 1-bedroom condo

    <strong>$985,000:</strong> The real estate agent boasts that this property offers a "spectacular 180 degree view of the city, Lions Gate Bridge, Stanley Park, Kitsilano, Point Grey and beyond to Vancouver Island." Source: Angell Hasman Realty

  • Charlottetown, P.E.I.: 8-bedroom house

    <strong>$998,700:</strong> This historic property was once the Edenhurst Inn and is now on sale as a private residence. "No expense was spared in the construction of this home using sycamore and oak for interior finishing," the realtor says. Source: Re/Max Charlottetown

  • Charlottetown, P.E.I.: 8-bedroom house

    <strong>$998,700:</strong> This historic property was once the Edenhurst Inn and is now on sale as a private residence. "No expense was spared in the construction of this home using sycamore and oak for interior finishing," the realtor says. Source: Re/Max Charlottetown

  • Charlottetown, P.E.I.: 8-bedroom house

    <strong>$998,700:</strong> This historic property was once the Edenhurst Inn and is now on sale as a private residence. "No expense was spared in the construction of this home using sycamore and oak for interior finishing," the realtor says. Source: Re/Max Charlottetown

  • Winnipeg: 4-bedroom house

    <strong>$989,900:</strong> This modernist mansion from custom home designers Artista Homes features three fireplaces, including a three-sided one, and ensuite bathrooms with heated floors. Source: Royal LePage Alliance

  • Winnipeg: 4-bedroom house

    <strong>$989,900:</strong> This modernist mansion from custom home designers Artista Homes features three fireplaces, including a three-sided one, and ensuite bathrooms with heated floors. Source: Royal LePage Alliance

  • Kamloops, B.C.: 2-bedroom ranch house

    <strong>$960,000:</strong> This ranch house inspired by the "pueblo" style of the U.S. southwest is located in one of the few places in Canada that look like the southwest U.S. — the B.C. interior. The house features foot-thick concrete walls, and is set into the hillside to look half-buried. Source: Royal LePage Kamloops

  • Kamloops, B.C.: 2-bedroom ranch house

    <strong>$960,000:</strong> This ranch house inspired by the "pueblo" style of the U.S. southwest is located in one of the few places in Canada that look like the southwest U.S. — the B.C. interior. The house features foot-thick concrete walls, and is set into the hillside to look half-buried. Source: Royal LePage Kamloops

  • Kamloops, B.C.: 2-bedroom ranch house

    <strong>$960,000:</strong> This ranch house inspired by the "pueblo" style of the U.S. southwest is located in one of the few places in Canada that look like the southwest U.S. — the B.C. interior. The house features foot-thick concrete walls, and is set into the hillside to look half-buried. Source: Royal LePage Kamloops

  • Montreal: 5-bedroom townhouse

    <strong>$985,000:</strong> The realtor humbly describes this property as a "cottage in Westmount," but with five bedrooms, four baths and parking for two, this "cottage" is pretty out-sized. Source: Profusion Realty

  • Montreal: 5-bedroom townhouse

    <strong>$985,000:</strong> The realtor humbly describes this property as a "cottage in Westmount," but with five bedrooms, four baths and parking for two, this "cottage" is pretty out-sized. Source: Profusion Realty

  • Montreal: 5-bedroom townhouse

    <strong>$985,000:</strong> The realtor humbly describes this property as a "cottage in Westmount," but with five bedrooms, four baths and parking for two, this "cottage" is pretty out-sized. Source: Profusion Realty

  • Toronto: 4-bedroom bungalow

    <strong>$989,000:</strong> Located in an area with lots of surrounding commercial properties, the seller notes that the zoning could easily be changed to allow for a business. But you can always just live in this property, if paying $1 million for a bungalow strikes you as reasonable. Source: Realty Way Corporation

  • Saskatoon: 3-bedroom house

    <strong>$970,000:</strong> Don't let your eyes deceive you: This isn't a historic property. Rather, this duplex is a recreation of the Todd House, a 19th-century home located in Toronto. It's so modern it even features an indoor garage. Source: Hallmark Realty

  • Saskatoon: 3-bedroom house

    <strong>$970,000:</strong> Don't let your eyes deceive you: This isn't a historic property. Rather, this duplex is a recreation of the Todd House, a 19th-century home located in Toronto. It's so modern it even features an indoor garage. Source: Hallmark Realty

  • Saskatoon: 3-bedroom house

    <strong>$970,000:</strong> Don't let your eyes deceive you: This isn't a historic property. Rather, this duplex is a recreation of the Todd House, a 19th-century home located in Toronto. It's so modern it even features an indoor garage. Source: Hallmark Realty

  • Port Medway, N.S.: 3-bedroom seaside estate

    <strong>$990,000:</strong> Originally meant to be occupied by the architect who designed this property, this property on Nova Scotia's South Shore is "designed to be self-sustaining," the realtor says, and was built partly using reclaimed and re-purposed materials. Source: Tradewinds Realty

  • Port Medway, N.S.: 3-bedroom seaside estate

    <strong>$990,000:</strong> Originally meant to be occupied by the architect who designed this property, this property on Nova Scotia's South Shore is "designed to be self-sustaining," the realtor says, and was built partly using reclaimed and re-purposed materials. Source: Tradewinds Realty

  • Port Medway, N.S.: 3-bedroom seaside estate

    <strong>$990,000:</strong> Originally meant to be occupied by the architect who designed this property, this property on Nova Scotia's South Shore is "designed to be self-sustaining," the realtor says, and was built partly using reclaimed and re-purposed materials. Source: Tradewinds Realty

  • An actual house in Vancouver!

    It may be a shock to some, but yes, it is possible to buy an actual house — not a condo — for under a million in Vancouver. Here's proof: A two-bedroom property in the city's desirable Kitsilano neighbourhood, for a mere <strong>$998,800!</strong> Source: Sutton Group - West Coast

  • An actual house in Vancouver!

    It may be a shock to some, but yes, it is possible to buy an actual house — not a condo — for under a million in Vancouver. Here's proof: A two-bedroom property in the city's desirable Kitsilano neighbourhood, for a mere <strong>$998,800!</strong> Source: Sutton Group - West Coast

  • An actual house in Vancouver!

    It may be a shock to some, but yes, it is possible to buy an actual house — not a condo — for under a million in Vancouver. Here's proof: A two-bedroom property in the city's desirable Kitsilano neighbourhood, for a mere <strong>$998,800!</strong> Source: Sutton Group - West Coast




In October 2012, construction data service Emporis named Toronto "North America’s new high-rise metropolis," with the most high-rises under construction on the continent, prompting concerns over a disconnect between supply and reduced demand.

In November, Urbanation executive VP Ben Myers said developers had reacted to a sharp downturn in sales and began to put the brakes on project launches.

Project launches for 2013 have reached the lowest levels since fall 2009, the Star pointed out.

Hildebrand expects the downward trend to improve later in 2013, thanks to competitive prices and new projects in Q2, the statement said. He pointed to resale figures for signs of improvement. Those sales jumped by 9 per cent from 2012’s Q4 to 2013’s Q1, although average index prices fell 0.5 per cent.

On a national level, building permits increased 8.6 per cent in March, albeit mostly thanks to a demand for new institutional buildings, Canadian Press reported.

Residential building permits grew 1.7 per cent to $3.6 billion in March, following an 8.1 per cent decrease in February. CIBC economist Emanuella Enenajor attributed the overall decline to the government tightening mortgage rules last year and a “deceleration in demand."

With files from The Canadian Press

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