Toronto housing market weathers storm

Michael Babad – Globe and Mail

Toronto house sales are faring relatively well as the spring market begins in earnest, though the condo market is still hurting.

Comment: The condo market saw 4.3% fewer sales with 5.9% higher prices. Yeah, wow, that sure is a hurting market…

Home sales in the Toronto area, a flash point for concerns over Canada’s residential real estate market, dipped by less than 1% in the first two weeks of April from a year earlier, to 4,260, though the Toronto Real Estate Board noted there was one extra selling day this year. And that was despite the lousy weather.

The average price rose 4.3% to $527,397, the group said.

The market is being buoyed by single homes outside the city proper.

“April sales to date, which were driven by strong growth in single-detached home sales in the regions surrounding Toronto, represent a positive start to the spring market,” said the group’s president, Ann Hannah.

Comment: Much of the detached home sales have moved to the 905 because the prices are almost half of those in the 416, plus there are simply very few listings in Toronto proper.

“Because market conditions have remained tight, we continue to see average price growth well above the rate of inflation for many home types.”

Comment: And it is the same old refrain we have seen for years, demand just exceeds supply.

Over all in the Toronto region, sales of detached homes rose 3.9%, but that was driven by a 6.8% increase in the so-called 905 area, the communities that surround the city denoted by their area codes. In Toronto proper, those sales fell 3.4%.

The condo market remained a trouble spot, in both areas, with sales down 5.8%, led by the outlying region.

Comment: It should be noted that 416 condos only fell 4.3%, it was 905 condos that dragged the average down.

In the first quarter, condo sales were down by some 17% in the Toronto area, and prices down 0.5%, while rentals were up by almost 13%.

Comment: And what an amazing rebound we are seeing in April. Condo sales rose almost 13% from -17% t -4.3% and prices jump 6.4% from -0.5% to +5.9%. I think we can safely say that the danger has passed and we are seeing a resurgence of the condo market. New projects are down, thus lowering supply. So demand increases pressure on existing stock and you get positive results.

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Contact Laurin Jeffrey for more information – 416-388-1960

Laurin Jeffrey is a Toronto Realtor with Century 21 Regal Realty. He did not
write these articles, he just reproduces them here for people who are
interested in Toronto real estate. He does not work for any builders.
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