Tag Archives: second half
Double-digit gains characterize average price appreciation in most Toronto neighbourhoods in 2010
Toronto’s housing market roared back to life in the first half of 2010, with single-detached homes and condominium apartments and townhouses posting unprecedented double-digit gains in average price in most districts, according to a report released today by RE/MAX Ontario-Atlantic Canada. This is in stark contrast to the July 2009 RE/MAX report that found that values in approximately 80% of neighbourhoods surveyed in Toronto had depreciated over the same period in 2008.
RE/MAX examined 63 Toronto Real Estate Board (TREB) districts in the single-detached category between January and June of 2010 and found that 85.7% experienced double-digit gains. Mississauga’s Lorne Park (W13) led in terms of percentage increase in average price with a 30.2% upswing in the first six months of the year, bringing year-to-date values in the area to $880,373 (vs. $676,289 in 2009 and $830,041 in 2008). Markham (N01) ranked second with a 27.7% jump to $779,168 (vs. $610,322 in 2009 and $683,050 in 2008) while Armour Heights, Bathurst Manor (C06) came in a close third at 27.5% (rising to $732,535 from $574,599 in 2009 and $589,808 one year earlier). Mississauga’s Creditview, Erindale area (W16) secured fourth spot with an average price of $561,973 – up 26.5% over 2009′s $444,221 and 2008′s $476,877. Rounding out the top five was York Mills, Hogg’s Hollow, Bridle Path (C12) with a 26.2% increase over last year and an average price of $1,868,591 (vs. $1,480,296 in 2009 and $1,580,851 in 2008).
“While first-time buyers dominated housing markets during the first half of 2009, move-up buyers ruled during January to June of 2010,” says Michael Polzler, Executive Vice President, RE/MAX Ontario-Atlantic Canada. “Rising interest rates and the introduction of the Harmonized Sales Tax (HST) in the province helped drive activity, with more than 50,000 sales reported year-to-date – a figure on par with record 2007 levels.”
As in years past – the exception being 2009 – the second half of the year will be more tempered, with price appreciation moderating somewhat in most neighbourhoods. The one exception to the rule will be the hot pocket areas that continue to experience limited inventory.
With affordability a growing issue for many in the Toronto market, the city’s vast supply of existing condominium apartments and townhomes offer a financially attractive alternative. Like single-detached homes, however, condominium prices were on the upswing in the first six months of the year in the 59 TREB districts examined – with 61% reporting double-digit increases.
The Danforth, East York (E03) was the top performing condominium market in terms of price appreciation – with values up 28.2% to $222,421. While the increase is significant compared to the same period in 2009, it’s a more moderate 15% ahead of the $195,019 reported in 2008. Yorkville (C02) secured second spot, with a 22.6% increase in values, bringing average price to $653,745 – a serious uptick over the 2009 level of $553,302 but only a nominal 5.6 increase over 2008′s $619,151. Markham (N01) took third place with an increase of 22.1% to $332,590 over the 2009 figure ($272,316). Bayview Village (C15) – Toronto’s newest condominium corridor – saw a 19.6% increase, with values rising to $331,063. North York (C14) continued to experience upward momentum during the first half of the year, with average price on the Yonge St. line up 19.5% to $363,685, compared to the $304,342 reported during the same period in 2009.
Overall, single-detached homes in TREB’s North district (north of Steeles Ave.) saw the greatest percentage increase, with year-to-date average price rising 17.5% to $617,723 (compared to $525,635 one year ago). Not surprisingly, condominium apartments and townhomes in the central core experienced the most significant upswing, with average price in TREB’s Central district rising 16.8% to $385,996, up from $330,517 one year ago.
“Both housing types experienced serious percentage increases year-over-year – yet its important to keep those price hikes in perspective,” says Polzler. “Last year, 80% of those districts experienced a decline in value. The bounce-back – fuelled by unprecedented market conditions including a severe shortage in listing inventory – simply returned average prices to their normal course.”
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Contact the Jeffrey Team for more information - 416-388-1960
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Realistic pricing key to selling home
Luann Lasalle – The Canadian Press
Home buyers can expect more choice and lower prices in the second half of 2010, while sellers can expect fewer offers for their homes, says one of Canada’s leading real estate brokers.
“Accurate pricing is going to be really key,” said Phil Soper, CEO of Royal LePage Real Estate Services.
In its latest housing survey, Royal LePage said yesterday the real estate market will start to slow in the second half of 2010 with the number of sales expected to fall compared with the hot activity early in the year.
“I would say if you’re a seller, the first thing you should expect is fewer multiple offers on your home,” Soper said from Toronto.
Sellers who try to squeeze extra money out of their homes will likely have their homes “languish” on the market, unless they’re exceptional properties, he said.
“I believe we are through the highly volatile spiking of prices and activity levels, both up and down,” Soper said. “We’ll see a much a more stable, but frankly less exciting in a good way, real estate market in the next 18 months,” he said.
Soper said a lot of buyers were frustrated by a tight supply and “overexuberant competition,” particularly in the first quarter, but that’s easing with increased listings.
In the first half of this year, about half of real estate transactions were from people who were looking to buy a home, but weren’t necessarily selling one, he said.
“It took a while for sellers to get comfortable that the recovery from the recession was real. We had an all-time record number of new homes come on the market in the first quarter of 2010. It started to impact prices in the second half (of 2010).”
Soper also noted that “fiscally aware 20-somethings,” especially women, are now much more interested in buying homes than they were in the past.
Royal LePage said some markets will see a decline in home prices and sales volumes toward the end of 2010, but they should be seen more as a reflection of the highs reached late last year rather than a major slowdown.
Prices for detached bungalows and two-storey houses were up about 9% in the April-June quarter, compared with the same time last year. Condominiums were up 7.3%.
Royal LePage is forecasting that by the end of 2010, home prices will rise an average 6.8% over last year, while the number of home sales will increase by just over 1% from 2009.
Vancouver and Toronto showed some of the largest increases in the second quarter of 2010.
Average prices in Vancouver were up 16.6 to 19.1% while prices in Toronto rose by an average of 7.7 to 11.4%.
However St. John’s, N.L., had the country’s biggest increase with prices up an average of 18.4% to 9.6%.
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Contact the Jeffrey Team for more information - 416−388−1960
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House prices to remain steady
Toronto Sun
Despite a modest decline in sales forecast for the second half of 2010, Toronto’s house prices are expected to remain steady, according to the Royal LePage House Price Survey and Market Survey Forecast.
Standard two-storey homes and detached bungalows saw increases from both the previous quarter as well as year-over-year comparisons to 2009.
“It’s important to understand the real estate trend over the past year to keep these increases in context,” said Gino Romanese, senior vice president, Royal LePage Real Estate Services Ltd. “In 2009, typical seasonal growth in the second quarter was delayed until the third quarter. Fueled by the threat of rising interest rates and to a lesser extent some pressure to buy prior to the introduction of HST, growth continued right through the second half of 2009 into the first half of 2010.”
In the second quarter of 2010, standard two-storey homes increased 10.5% year-over-year to $589,857 from $533,748 in 2009. Detached bungalows increased 11.4% to $481,933 compared to $432,433 during the same period last year. Standard condominiums were up 7.7%, with the average price in the second quarter rising to $326,913 from $303,650 in 2009.
“By the end of 2010, we expect to see about 7% growth in average house prices in comparison to 2009. However, this growth has already been accounted for in the first half of 2010. Average prices are expected to decline moderately for the rest of the year.”
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Contact the Jeffrey Team for more information - 416−388−1960
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Related posts:
- Toronto’s house prices stabilizing The three types of properties surveyed in Toronto’s real estate…
- Toronto Real Estate Forecast 2010 MLS® sales in the GTA will hit a record high…
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