Toronto Home Prices Higher

Home prices set record as West drives market

Average resale crests $300,000; boom defies slump in U.S.

DAVID GEORGE-COSH

May 30, 2007

Canada’s housing market has continued to escape the downturn unfolding in the U.S., with the average resale price of a home climbing above the $300,000 mark for the first time in April.

Average prices, sales values and listings all set fresh records last month, and regional disparity continued to be the story with most of the frenzy taking place in provinces west of Ontario, according to the Canadian Real Estate Association.

Of all the western provinces, nowhere is as hot as Saskatchewan.

The province experienced almost 100-per-cent growth in dollar volume since the previous year and, according to Rob Nisbett, co-broker owner of Re/Max in Regina, residents sign up to be placed on an 18-month waiting list to purchase a new home.”It’s quite incredible,” Mr. Nisbett said. “Business is magnificent.

“We do not have enough product to keep up with demand. I’ve never seen anything like this since I’ve been in this business almost 25 years ago,” Mr. Nisbett said.

Saskatchewan also saw the largest percentage increase in annual unit sales and new listings of all provinces.

“Saskatoon has been a stable market but has exploded in recent months,” said Gregory Klump, CREA’s chief economist. “After having moved to Alberta where the cost of living is more dear, people are moving back and buying homes.”

The average price of a resale home in Canada jumped 9.3 per cent in April from a year ago to $305,542, the report said.

British Columbia remains the most expensive province in which to purchase a home, with the average resale price at $431,909, while Prince Edward Island is the cheapest at $135,019.

The Prairie provinces and B.C. were the only regions of the country that saw double-digit price growth. Year-to-date transactions also set a new record in April.

“Over all, the housing market remains remarkably healthy,” said Douglas Porter, deputy chief economist at BMO Nesbitt Burns Inc. “Given the dire straits of the U.S. market, it puts the Canadian numbers in particular stark relief.”

Canada’s real estate market continues to boom amid low mortgage rates and a historically low unemployment rate. It’s a different story south of the border, with mortgage defaults rising alongside diminishing sales, home prices and builders’ profits.

Seasonally adjusted home sales in Canada’s major markets rose 1.5 per cent to 43,643 units, led by rising activity in Ontario, Quebec and B.C. It was also the first time that new listings for resale homes surpassed the 70,000 mark.

“This builds on strong sales we’ve seen in the first part of the year and continues the momentum for resale housing that began towards the end of last year,” Mr. Klump said.

Mr. Porter said the booming commodities market in western provinces is another factor driving residential real estate sales to record numbers. “Particularly in oil and gas, but also Saskatchewan’s uranium, potash and even grain markets, have all contributed to a strong economy out West.”

Not all provinces experienced strong sales growth. Newfoundland, New Brunswick and Manitoba all saw a decline in the dollar volume of home sales in April.

Sales are forecast to reach even higher levels by the end of the year in all provinces except B.C. Price increases are expected to finish this year strong at 9.5 per cent.

“The year-to-date activity was up 6.7 per cent, and that’s a new record for this period of time. It really supports our view that we’re going to reach a new annual record this year,” Mr. Klump said.

HOUSING PRICES CONTINUE STEADY CLIMB

	April ‘07	April ‘06	% change
British Columbia	$431,909	$388,921	11.10%
Alberta	$359,640	$277,139	29.80%
Saskatchewan	$163,811	$132,355	23.80%
Manitoba	$171,130	$158,118	8.20%
Ontario	$299,796	$286,470	4.70%
Quebec	$208,693	$196,948	6.00%
New Brunswick	$139,138	$134,345	3.60%
Nova Scotia	$191,076	$179,208	6.60%
Prince Edward Island	$135,019	$125,564	7.50%
Newfoundland	$142,497	$140,902	1.10%
CANADA	$305,542	$279,584	9.30%

SOURCE: CREA

Toronto Real Estate prices are showing gains in comparison to the US market. I am sure that Toronto Condos will also be above average when the actual sales are compared to the sale of homes.

Current listings of Toronto Condos and Homes can be found on my Toronto Real Estate website.

Nail That Toronto Condo Sale

To sell your Toronto Condo today you have to market hard,  price it smart and make it look irresistible. Let me show you how you can make all the right moves.

Bring your property to the full attention of buyers.
Use a Toronto Real Estate Agent, and their MLS (Multiple Listings Service), to market your property, there just isn’t anything better. The online exposure you get is immense, all the Web Sites of the different Brokers, different agents and different Real Estate Boards across Canada. That is a lot of exposure. Hire a professional Realtor that has their own Toronto Real Estate listings web page.

See your home as others see it.
Buyers do not want to visualize or imagine what a property will look like. Remove the clutter and try to give your home the” model home” treatment. I have seen the results of home stagers and their decorated condos look really good and sell quite fast.

Price it right.
Try to price your home at the same level as comparable just solds. A Toronto Real Estate Agent would be glad to give you a comparative market analysis. If you set the asking price too high, prospective buyers might not be able to afford it or they will use your higher price to buy a similar property with more of a perceived value.

Use a Toronto Real Estate Agent to Nail That Sale
Toronto agents are working with many purchasers at any given time. Multiply the number of agents 25,000 (I just verified the number) by the number of purchasers, say 10 and you have 250,000 active purchasers.

If you have a Toronto condo for sale now or in the near future, you can contact me by phone or email to discuss the details for a successful sale of your property.

Iris Li
Toronto Real Estate Web Site

Toronto Bloor West, High Park Area

The  Toronto Bloor West, High Park, Swansea neighbourhood was originally home to the First Nations people and later to Europeans who enjoyed its rolling hills and greenery. Surprisingly it was the last independent village to be amalgamated in the City of Toronto as late as 1967.

Today it still seems like a small village and has become very trendy with local green grocers for flowers and groceries, meat markets for fresh cuts, and European gourmet shops that sell fresh cheese and bread.

Bungalows, semis, detached 2-storey and new custom built homes make up this neighbourhood. An original 1920s 1,000 square foot two-bedroom bungalow sells for $400,00 and up to $1-million if renovated and topped up with a second floor.

Estate type homes on acre lots, backing onto Grenadier pond or ravines can sell for $2.7-milion. Condos are becoming desirable as well with High Park being a big attraction.

Transit to downtown can be a 20-minute drive along King Street to the financial district or 25-minutes along Dupont to Yonge-Bloor.

Local celebrities living here include Moses Znaimer of City TV, Michael Overs, founder of Pizza Pizza and former author Lucy Maud of Ann of Green Gables who lived at 210 Riverside Drive.

A two-bedroom Condo on Quebec Ave. (W02) asking price is $320,000 and there are more Condo projects south toward the Lake at similar prices. Updated Bloor West and High Park Condos can be found on my Toronto Real Estate web site.