Toronto Condo and Real Estate Blog

CBC News

Real estate prices are still rising across Canada, but at their slowest rate in more than a year, industry figures show.

The average resale home sold for $325,183 in Canada’s major markets in January, according to the Canadian Real Estate Association.

That’s a year-over-year increase of 8.6% — the smallest yearly price increase since December 2006.

But average prices still reached record levels in seven markets last month —Victoria, Saskatoon, Kitchener-Waterloo, London and St. Thomas, Sudbury, Ottawa, and Saint John, N.B.

Vancouver remained the most expensive city in Canada for housing, with the average transaction last month topping out at $588,183. That’s up 10.8% in a year.

But the title of fastest-rising price went to Regina, where the average home sold for $198,585 — a whopping 69.1% jump from last year.

The average price in Saskatoon rose 36.5% to $259,444.

Year-over-year increases in formerly red-hot Calgary and Edmonton slipped back into single-digit territory — Calgary’s average price was up 8.8% to $408,672, while Edmonton’s average of $332,051 represented a 9.3% rise.

New listings surged to a new national record last month, led by double-digit increases in western Canada. “Price increases in those markets will be more modest compared to what we saw last year,” said Gregory Klump, chief economist at the association.

January sales in 20 major markets were down 0.4% from the previous month on a seasonally-adjusted basis and were down 8%, year over year.

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Toronto Real Estate Board reports sales near 3,000 at mid-month

Real estate sales in the Greater Toronto Area declined in the first two weeks of February, Toronto Real Estate Board President Maureen O’Neill announced today.

The first half of the month yielded 2,775 transactions, down 14% from the 3,240 sales recorded in the same timeframe last year. The moderation in sales was more pronounced within the City of Toronto - down 18% to 1,066 from last February’s 1,308 - than in the 905 suburbs, which saw transactions off 11%.

“It’s important to recognize that the mid-month report provides an indication of market conditions based on a very brief period,” said Ms. O’Neill.

“However, we believe the harsh winter weather we’ve experienced in the early part of the month has had a negative impact on both sales and inventory levels. If you can’t get buyers out to your open house, then you are less inclined to list. And fewer listings means less appealing product for the potential home-buyer. It’s a compound effect.”

Although sales eased, several positive factors were also noted. At $385,735, the average price in the GTA rose 7% compared to $358,533 recorded in mid-February 2007. Within the City of Toronto, the average rose 11% to $434,657, although pockets within the East end (Agincourt, for example) rose at the more affordable pace of around 5%. As well, properties are remaining on the market fewer days.

The average number of days on market is currently 31 versus 35 days at the same time last year.

Furthermore, a few neighborhoods both within and outside of the 416 area code saw increased sales over the first half of February, 2007.

In Ajax (E14) sales were up 11% compared to mid-February 2007, based mainly on an increase in detached home sales.

In the West region, the W3 (York South) district saw a 41% increase in transactions, driven by strong sales of semi-detached homes.

Central Richmond Hill (N04) also experienced a notable increase in sales compared to the same timeframe last year. Transactions were up 21%, primarily due to an increase in attached row sales.

“We are optimistic that we will see a strong spring market because the economic fundamentals remain in place,” said Ms. O’Neill. “Prices are still particularly affordable in Toronto’s East end.”

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Condominium Or House: Which one Is Right For You?

The Toronto condo market is flourishing, with modern towers and low mortgage rates luring would-be home buyers with the possibility of building equity at rent-like prices.

Because of all of the advantages of home ownership in comparison to renting, many of you will soon be reaching a point where you want to buy a home. However, you may not be sure whether you should actually buy a house or if you should look in to buying a condo instead. This is especially true for younger home buyers who might want the benefits of living in the more communal situation of the condo.

Should you join the condo club or go for a more traditional home ownership? Consider your lifestyle and weigh the pros and cons of each before deciding which to buy.

A condo is probably the right choice for you if:

* You don’t have a lot of money to spend but still want to invest in home ownership.
* You are interested in being part of a small community living in the same complex.
* You are comfortable living in close proximity to your neighbours.
* You are a single individual or a couple that is looking for a small home rather than a large property.
* You don’t mind having certain aspects of your home ownership regulated by a committee (a home owner’s association made up of some of the tenants who live in the other condos).
* You live in an urban area where condos are common (such as Toronto or Vancouver)
* You run a busy lifestyle and prefer to enjoy amenities like a pool or a shaded grounds area but aren’t able to maintain such amenities yourself either because of the time that it takes or the cost.

However a house is more likely to be a better choice for you if:

* You have (or plan to have) a large family.
* You are a very private person who does not like living close to your neighbours or having your home choices regulated by an association.
* You are investing in home ownership primarily for the purpose of resale of the home in the future (since property values are usually higher than condo values).
* You are seeking to purchase a large home and / or you need outdoor grounds areas for things like large pets.
* You enjoy maintaining your own yard or garden.
* You live in a rural area or in a location where there are not many condos on the market.

Although there are always exceptions, condo purchases are usually best for single individuals who have neither the money to invest in a house nor the time to maintain the upkeep of the home. These tend to be young people who don’t mind apartment-style living in close quarters with their neighbours, who are comfortable having some regulation by the home owner’s association and who enjoy sharing common areas with others.

Often, condo buyers are first time home buyers. If, in contrast, you are an older adult who has (or may soon have) a family and would like the freedom and privacy of a home with its own property, then a house is probably the right choice for you.

Regardless of whether you buy a house or a condo, it’s important to do your homework and consider the future of the neighbourhood you’re buying into. The old saying of “location, location, location” remains true for both. Each is a significant investment, and you need to find a safe and vibrant neighbourhood capable of nurturing your investment into the future.

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Contact the Jeffrey Team for more information - 416-388-1960