Rebound hammers affordability
Housing affordability deteriorated sharply in Toronto in the third quarter of 2009 as home prices spiked above pre-recession levels. "The big improvement in stock markets likely helped drive prices higher, especially since Toronto has many people who work in the financial services area," Hélène Bégin, senior economist at Desjardins Bank, said in an interview yesterday.
Low interest rates, pent-up demand and a lack of listings saw average Toronto prices for existing homes hit $402,762 in the July-September period, the largest such increase of any Canadian city.
See article by Tony Wong in the Toronto Star »
October 29, 2009 in Toronto Real Estate Trends | Permalink | Comments (2) | TrackBack
Rogers Launches Real Estate Venture
Zoocasa moves into Dodge City
Canadians love looking at homes online, even when they’re not buying. Nearly a third of all Canadian Internet users browsed real estate listings at least once in July, according to comScore Media Metrix, with the most visits going to Realtor.ca, run by the Canadian Real Estate Association.
But a new player now wants to crack that dominance: Rogers Communications. In late August, the secretive New Ventures division of the cable, wireless and media giant launched Zoocasa, a real estate search site that aims to combine listings, Google Maps and the characteristics of specific neighbourhoods, like school ratings and public transit. “We think there is a lot of value in the contextual data about neighbourhoods,” says Butch Langlois, the site’s general manager. “Is it pre-Starbucks up-and-coming? Is it economical? That’s relevant to homebuyers.”
At the moment, the site is sparse on listings, showing only about half the actual number of homes for sale in any given region. Langlois’s challenge is to get agents, brokers and real estate boards — the same industry professionals that currently feed Realtor.ca with listings — to share that same information with a glitchy startup website showing more promise than performance.
See the full story in Canadian Business magazine »
September 23, 2009 in Toronto Real Estate Trends | Permalink | Comments (1) | TrackBack
Home affordability index declines
RBC Survey say homes in Toronto are now more affordable.
Affordability rates remain worse than average in Toronto, where a two-storey home declined 0.7 percentage points to 55.7 per cent of income. That means it takes more than half of pre-tax household income to carry a mortgage, property taxes and utilities. It had improved 8.6 percentage points in the past year and is now close to its historic average of 53.6 per cent.
The price of a standard two-storey home in Toronto fell 2 per cent in the second quarter of 2009 to $509,300, the RBC report says.
See the full story in the Toronto Star »
September 10, 2009 in Toronto Real Estate Trends | Permalink | Comments (32) | TrackBack
Toronto real estate proves resilient
One in five Toronto neighbourhoods have surpassed their pre-recession average price levels.
In the midst of the recession, approximately twenty per cent of single-detached homes and condominiums in Greater Toronto Area neighbourhoods managed to post an increase in average price, according to RE/MAX. The firm's Return on Investment Report found that 11 (17 per cent) of the 65 Toronto Real Estate Board (TREB) districts reported an upswing in the value of a single-detached home in the first six months of 2009, despite one of the worst first quarters on record.
Beach home price increases lead the GTA
The Beach (E02) saw the greatest percentage increase year-over-year at 3.79 per cent, with average price rising to $715,422, up from $689,278 in June, 2008. Pickering (E13) placed second, with the average price of a single-detached home climbing 3.72 per cent to $389,536, up from $375,577 from one year earlier. Willowdale, Newtonbrook (C14) ranked third, with a single-detached home rising in value from $754,470 to $779,537 -- a 3.32 per cent increase. Rounding out the top five neighbourhoods are newcomers Downsview, Weston (W04) – where prices have climbed 2.25 per cent to $384,485 from $376,007, and Rouge, Malvern (E11) where a 1.99 per cent uptick has brought year-to-date housing values to $345,468 (from $338,738).
“Purchasers clearly moved to take advantage of greater affordability in the marketplace in the first half of the year,” says Michael Polzler, Executive Vice President, RE/MAX Ontario-Atlantic Canada. “Prices were down in virtually every neighbourhood surveyed; supply of homes listed for sale was at an all-time high; and interest rates were at historic levels. If you’re a buyer, it doesn’t get much better than that.”
Given their more affordable price point, condominium properties fared slightly better than single-detached homes, with 13 (22 per cent) of 59 TREB districts posting an increase in average price. Condos in Cliffcrest, Guildwood (E08) in the city’s east end saw the greatest appreciation in value, with average price climbing 6.45 per cent to $175,855, up from $165,197 one year ago. North Toronto, Cricket Club (C04) ranked second with a 6.1 per cent increase in average price, bringing condominium values to $301,065 (up from $283,746). Downsview, Weston (W04) clinched third spot, with a 4.37 per cent increase in average price to $173,083 in June 2009, up from $165,834 one year earlier. Mississauga’s thriving Port Credit community (W12) experienced a 2.63 per cent increase in condominium values year-over-year – with average price hovering at $304,954. Bendale, Woburn, and West Hill comprise E09, where the average price of a condo appreciated 2.46 per cent over figures reported one year ago to $201,830.
“But that was then and this is now,” says Polzler. “Lower inventory levels combined with increased demand -- comparable to what we’ve seen in recent months -- is expected to place renewed pressure on housing values for the remainder of the year. As a result, average prices are forecast to be at par or slightly ahead of last year’s levels by year-end in almost all neighbourhoods.”
Case in point is areas like Toronto’s east end, where bidding wars are breaking out on single-detached properties daily. The average sale-to-list price ratio in E01 and E02 approaches 100 per cent. Average prices are up in four of the 18 East District neighbourhoods. Overall average price in the east is down less than one per cent to $346,597 from the January to June 2008 figure.
The areas with the highest percentage decreases in the average price of a single-detached home have also seen the greatest increases in the number of properties sold. The overall average price of a single-detached home fell by 5.17 per cent in the Central District to $884,036, down from $932,198 one year ago, while the North District dropped 4.49 per cent in value to $526,693, down from $551,452 in June 2008. Sales are up in both areas, with 2,000 homes changing hands in the central area (up 4.28 per cent over one year ago) and 4,249 properties sold in the north (up three per cent from June 2008).
Only one district reported an overall increase in the average price. Condominiums in the North District – comprised mostly of York Region – posted a 0.26 per cent increase in values – and now hover at $275,822, compared with $275,113 one year ago.
“The momentum going forward is expected to be healthy – buoyed by positive economic data and a return to stability in the financial sector,” says Polzler. “There may be some bumps along the road, but all in all, the worst is over for the residential real estate in the Greater Toronto Area.”
July 28, 2009 in Toronto Real Estate Trends | Permalink | Comments (3) | TrackBack
A Miraculous Resurrection?
It looks like a miraculous resurrection for the Toronto real estate market — or does it?
In the midst of recession, the average national price of Canadian resale homes hit a record level in May, and sales activity increased for the fourth consecutive month. While U.S. residential real estate prices have been falling for almost three years, Canada seems to have stumbled and picked itself up again in a span of 12 months.
"It's all happening because of the crack cocaine of housing, which is rock-bottom interest rates," said Garth Turner, author of Greater Fool: The Troubled Future of Real Estate. "They're so irresistible, especially to inexperienced first-time buyers. That's what's propelling the market."
See the full story in the Toronto Globe and Mail »
June 29, 2009 in Toronto Real Estate Trends | Permalink | Comments (0) | TrackBack
Toronto's Tony Real Estate Hot
May 2009 strongest month on record for luxury home sales, says RE/MAX
Sales of luxury properties in the Greater Toronto Area posted their strongest performance on record in May 2009, according to RE/MAX Ontario-Atlantic Canada. Two hundred and seventy-three high-end homes changed hands in May 2009, up 6% from 258 reported during the same period one year earlier, and the highest number of sales over $1 million in a one-month period in the history of the Toronto Real Estate Board.
The previous record was set in May of 2007 at 266 sales. "Confidence is slowly returning to the marketplace," says Michael Polzler, Executive Vice President, Regional Director, RE/MAX Ontario-Atlantic Canada. "Traditional market indicators are in place - the stock market has made tremendous gains in recent months, crude values have risen significantly, and the Canadian dollar has gained almost 10 points in the past month. Combine these influences with pent-up demand and growing economic stability and you have the ingredients for solid sales in the top-end of the market."
Further evidence of a rebound is the recent sale of a Bridle Path home priced at over $13 million, the first sale over the $10 million price point in more than a year. The 18,000 sq. ft. gated estate, situated on more than two acres, was listed by Barry Cohen, Broker, RE/MAX Realtron, and featured a spectacular backyard with a negative edge waterfall pool, fountains, hot tub, and tennis court.
Demand for homes priced in excess of $1 million has increased steadily since the beginning of the year, says Polzler, mimicking the overall real estate market. Seven hundred homes have changed hands year-to-date, compared to 944 in January to May of 2008. Given current momentum, however, it's likely that activity will continue at a healthy pace for the remainder of the year - with sales at year-end at least on par or ahead of 2008 levels.
June 12, 2009 in Toronto Real Estate Trends | Permalink | Comments (5) | TrackBack
Lots of cranes, few sales
The state of Toronto’s condo market:
Despite a record number of construction cranes gracing the horizon, Toronto’s once thriving new condo market hit a dismal sales low in the first quarter of 2009, according to an industry analysis revealed yesterday. Urbanation Inc., which researches the development industry, reported that the number of sales recorded during the first quarter dipped to 917 units – the lowest level since 1996 and a far cry from the high of nearly 7,000 units sold in the second quarter of 2007.
“It’s a decline of 73% over the performance of last year, of 2008,” said Jane Renwick, executive vice president of Urbanation. “The market really came to a halt in October, November and we haven’t picked up momentum through the first quarter.
See article by Allison Hanes, National Post »
May 12, 2009 in Toronto Real Estate Trends | Permalink | Comments (2) | TrackBack
We're warmed by the SUN
The blogosphere is full of real estate wisdom -- by LISA BRANDT in today's SUN MEDIA
If we're going to take any lesson from the housing collapse in the U. S., it's got to be a resolve to be better informed. The market is flooded with first-time buyers lured into taking on mortgages by low interest rates and special incentives. And whether you're dipping a tentative toe into the landowning ocean for the first time or diving in headfirst for the tenth, there's always something to be gained by learning from the experiences of others.
The wisdom, frustrations and funny tales of real estate bloggers are yours for free if you know where to point your browser.
For a round-up of current market news, tips and tidbits about Toronto neighbourhoods, surf over to toreal.blogs.com. It posts the latest expert opinions on trends and forecasts here at home and around the world. The page also lists mortgage rate updates and has dozens of links to other real estate-related blogs.
A totally Toronto-centric blog, www.movesmartly.com, is described by its editor as "part chronicle and part guide." It's written by a collection of real estate news junkies, including a lawyer and a mortgage broker. It also links to media reports on city-centric topics like neighbourhood revitalization and market trends. The site's editor invites like-minded writers to consider seeking approval to come on board and contribute blogs of their own.
If it's condos that catch your eye, www.truecondos.com is the brainchild of a city Realtor who specializes in condominiums and focuses on their particular pleasures and headaches. Andrew la Fleur blankets the city's condo market, including those up for sale, under construction and under development. He also shares loads of information about buying, selling and renting your condo.
Real estate investors and brothers Tom and Nick Karadza blog about speculating in this country's housing markets at www.therealestaterenegades.com.
While the site does have an informercial feel about it, there is a motherlode of free information for the wannabe investor and a free newsletter to sign up for.
If your idea of celebrity news is to ignore the red carpet fashions and focus instead on Hollywood estate wheelings and dealings, www.realestalker.blogspot.com is for you. Where else can you learn that actor Hank Azaria ponied up nearly $14 million for a massive gated home in Bel Air and that David Spade is renting his Malibu beach house for $65,000 a month for the summer?
Even the general interest blogger like myself, who isn't limited to one topic, occasionally runs into a real estate-related issue. I wrote a critical rant on my own site after an inspector missed a shopping list of major problems in a home I purchased, resulting in dangerous conditions and thousands in repairs. He had refused to even apologize, so I let him have it, cyber-style. If you run a Google search for "real estate hell," you'll find scads of similar rantings and ravings about homeowners' experiences, good and bad.
All of these blogs help create awareness of potential issues and inspire buyers and sellers alike to ask plenty of specific questions in the hope of avoiding any number of setbacks that can crop up with transactions pertaining to a home purchase or sale.
When you've filled up on information and advice, it's time to have a little giggle at www.lovelylisting.com. The owner of this ironically named website shares the most outrageous photos from actual real estate listings, complete with snappy headlines and commentary. They're gross, funny, careless and desperate, and they offer a lot of evidence that there's no substitute for a good photographer, stager or cleaner. At least one amateur lensman took shots of his home without realizing that a mirror had captured his wife lounging on a bed in the background.
You can do better if you take a little time to point, click and learn.
May 1, 2009 in Toronto Real Estate Trends | Permalink | Comments (0) | TrackBack
Toronto real estate 'experts' speak:
What a difference a year makes. Last year’s Post City Magazines roundtable came at the height of the real estate boom, and their panelists were accordingly optimistic about the health of Toronto housing. Now, the market has plummeted, leaving sellers devastated and buyers with something they haven’t had in a long time: leverage.
Post City locked some of the top names in Toronto's real estate scene in a room and demanded to know: Is it time to sell, buy — or just cry?
See the Malcolm Johnston article »
April 6, 2009 in Toronto Real Estate Trends | Permalink | Comments (1) | TrackBack
Recession and the real estate market
Looking for more information about buying a home in the current Toronto market?
The current global recession can be traced back to a collapse in the U.S. real estate market. Canada's market was never as hot as it got south of the borer, but it's already been slammed by the economic downturn.
The Investor Education Fund has a wealth of resources to help you make better decisions. How does buying a home compare with other investments? Find out by clicking here. Is a home a good investment? You can find more information by clicking here.
March 18, 2009 in Toronto Real Estate Trends | Permalink | Comments (1) | TrackBack
