Toronto Condo and Real Estate Blog

By Tavia Grant - Globe and Mail

The contrast between the Canadian and U.S. real estate markets has never been starker.

U.S. existing home sales sank to a near five-year low Wednesday while prices continue to slide. In Canada, however, home sales continue to defy all expectations, breaking records for the last three months.

“Such a divergence between the Canadian and U.S. housing markets is unprecedented,” said Marc Pinsonneault, an economist at National Bank Financial, in a note to clients.

More bad news landed with a thud Thursday, with a report showing U.S. new-home sales plummeted 6.6% in June — twice as much as expected.

U.S. foreclosures on the rise

As the nation’s real estate market continues to struggle, spiraling foreclosures are shaking not only homeowners and real estate agents, but also lenders and investors on Wall Street.

Generally, economic growth in Canada tends to mirror the ebbs and flows of its next-door neighbour. That’s not the case nowadays, for several reasons.

High energy prices are underpinning growth in Alberta, and sending national housing statistics higher, Global Insight (Canada) chief economist Dale Orr said in a report earlier this month. The swift rise in U.S. interest rates is another factor, and so is the fact that the Canadian housing market has been more steady in recent years.

Much of the difference may stem from exposure to the once-booming sub-prime mortgage market in the U.S. Over the past several years, low-interest mortgages were offered to many people with poor credit histories or low incomes. When borrowing costs sharply rose, however, new homeowners got squeezed.

The result has hammered U.S. economic data, corporate earnings and, this week, the stock market.

Today’s results, combined with Wednesday’s data show “the U.S. real estate slump is far from over,” said Benjamin Reitzes, economic analyst at BMO Nesbitt Burns Inc. “At some point falling home prices will affect the consumer, the only question is how far do prices have to fall? Housing continues to weigh on the economy with no end in sight.”

In Canada, meantime, the economy is expanding, jobs are being created and interest rates remain at a historical low.

A report Wednesday found U.S. existing homes tumbled 3.8% in June from May to the lowest level since November 2002. Second-quarter average home prices, meantime, are 0.6% lower than the same quarter a year ago.

In Canada, the number of existing homes sold in Canada has broken records in each of the last three months.

“Most importantly, this was true not only in the booming provinces of Alberta and British Columbia, but in the rest of the country as well, notably in the largest city Toronto,” Mr. Pinsonneault said.

Sales in the second-largest metropolitan area, Montreal, were at record levels during each of the last two months.

Canadian home prices have climbed almost 10 per cent over the last four quarters, quite a difference from the 0.6% drop in the same period in the U.S.

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Lawrence Park Homes

Lawrence Park is an idyllic neighbourhood situated in the geographic centre of Toronto. Its exquisite, luxurious homes tend to be well constructed and very tastefully renovated.

Because the homes in Lawrence Park were built gradually over the first half of the 1900s, there is a lot of unique character to the individual architectural designs. Despite this, the neighbourhood is far from disjointed; perhaps because of the maturity of the area, many people find that homes in Lawrence Park have a harmonious flow.

There are many reasons to call Lawrence Park home. Besides its elegant homes and park-like setting, affluent buyers are attracted to Lawrence Park for the following:

Excellent Location
Being right in the middle of the city means Lawrence Park residents can reach downtown quickly via the Bayview extension or the Yonge subway line, and cut across the top of the city on Highway 401, merely minutes away.

Top Schools
Some of Toronto’s best private schools are in the area, including Saint Clements, Crescent School, and The Toronto French School. Lawrence Park’s public schools, including North Toronto and Northern Secondary, are also quite highly regarded. York University’s Glendon Campus is also nearby at the corner of Lawrence and Bayview. Glendon is unique in that it offers its liberal arts studies in both French and English, on an estate-like campus nestled on the edge of the Don River ravine.

Shops and Restaurants
So many fine stores and restaurants are to be found near Lawrence Park. This stretch of Yonge Street is a hub of athletic shops (e.g. lululemon, Sporting Life, Puma), fine restaurants (Grazie, North 44, and Centro), stores with fine furnishings, clothing, and everything else. South of Eglinton on both Bayview and Mount Pleasant is home to lots more trendy eateries, antique stores, specialty shops, and other fine establishments to depart with money.

Lawrence Park Real Estate Boundaries

Lawrence Park stretches from Bayview Avenue west to Yonge Street, and from the Blythwood Ravine north to Lawrence Avenue East. Homes in Lawrence Park can be found in Toronto Real Estate District C10.

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Homes in Little Italy

Don’t let the name deceive you, a sleepy neighbourhood for migrants from the ‘Old Country’ this is not. The days are long gone where the neighbourhood was the primary landing point for Italian immigrants coming to Canada; the affordable homes in Little Italy have been attracting a diversity of cultures for many years. More recently however, Little Italy’s Edwardian and Victorian row houses and semi-detached homes have been enticing urban professionals and young hipsters wanting to live near what is now a hub of Toronto nightlife and shopping.

Though the scenery has changed immensely over the years, there are still some of the original Italian eateries, cafés, and clothing stores that recall Little Italy’s origins. Bar Italia, Café Diplomatico, and many others still offer traditional fine Italian fare with European ambiance. But now, the area is also home to the next generation of sleek pubs, trendy bistros, and Toronto’s best martini bars to boot. Boutique clothing shops also line this stretch of College Street, tempting residents as they go for weekend strolls to the local bakeries.

With the city core just a quick streetcar ride way, and the prices of homes still quite reasonable given the local amenities and proximity to downtown, Little Italy is a great choice for home buyers looking to live in a downtown Toronto neighbourhood that is alive with activity.

Little Italy Real Estate Boundaries

Little Italy stretches from Bathurst Street west to Ossington Avenue, and from Dundas Street West north to College Street. Homes in Little Italy can be found in Toronto Real Estate District C01.

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Contact the Jeffrey Team for more information