W
ith well over 250 Condo projects currently being promoted by developers in the GTA, it is clear that the condo market is as strong as ever. But what is driving the demand? Local news sources cite 2 related reasons that condos continue to sell well in Toronto's market: First, the longstanding and continuous upward pressure on prices for detached homes makes them unaffordable to buyers looking to live in some neighbourhoods. Second, condo living makes it possible to live in highly desirable neighbourhoods, but at a much lower price.
Also, this trend is not limited to the Toronto market, but in a few Ontario cities and also in the Maritimes.
Still, with the experience of the bursting bubble which happened in the US in 2008, the media plays it cautious, wondering outloud if maybe the burgeoning condo sales is a signal that housing prices have peaked.
Sources:
- Positive Signals Coming from the Canadian Condo Market (680 News)
- Condo Sales Surge in Ontario Cities (CBC News)
- Strong GTA Condo Market Shows Signs of Strain (Toronto Star)
March 10, 2011 | Permalink
January Housing Sales Dip Only Slightly From Last Year
T
he Toronto Real Estate Board is reporting that 4,337 homes were sold through the Toronto MLS Listings in January of 2011, a slight decrease of 13% over January of last year.
"While off the record pace experienced a year ago, the GTA resale market has started the year on a solid footing,” said President of the Toronto Real Estate Board Bill Johnston in a report. “Home buyers in Toronto and surrounding areas continue to benefit from a diversity of housing types for sale at many different price points" he said.
Canadian Real Estate Association reported seasonally adjusted sales totalling 39,481 homes in January, up from 37,773 the previous month but were down 6.4 per cent from 42,169 a year earlier. "This was the smallest year-over-year decline since May 2010 ... National sales activity has improved steadily since last summer, and now stands almost 25 per cent above the low point reached in July 2010,".
March 7, 2011 | Permalink
Toronto Sales Down, Average Price Up
R
ealtors in the Greater Toronto area reported 4,138 sales during the first two weeks of March 2011 – a five per cent decrease compared to the first two weeks of March 2010. The number of new listings also dipped – down by 15 per cent compared to the same period last year.
"A positive economic outlook for the Greater Toronto Area, including steady growth in jobs and incomes, has kept households confident in their ability to purchase and pay for a home over the long term," said Toronto Real Estate Board (TREB) President Bill Johnston.
The average price for transactions during the first 14 days of March was $460,196, representing a 4.6 per cent increase compared to the first two weeks of March 2010.
"Market conditions are tighter compared to this time last year, resulting in more competition between buyers and sustained upward pressure on the average selling price. The annual rate of price growth is expected to range between three and five per cent in 2011," said Jason Mercer, TREB's Senior Manager of Market Analysis.
March 5, 2011 | Permalink