Toronto Loft Conversions

Toronto Loft Conversions

I know classic brick and beam lofts! From warehouses to factories to churches, Laurin will help you find your perfect new loft.

Modern Toronto Lofts

Modern Toronto Lofts

Not just converted lofts, I can help you find the latest cool and modern space. There are tons of new urban spaces across the city.

Unique Toronto Homes

Unique Toronto Homes

More than just lofts, I can also help you find that perfect house. From the latest architectural marvel to a piece of our Victorian past, the best and most creative spaces abound.

Condos in Toronto

Condos in Toronto

I started off selling mainly condos, helping first time buyers get a foothold in the Toronto real estate market. Now working with investors and helping empty nesters find that perfect luxury suite.

Toronto Real Estate

Toronto Real Estate

For all of your Toronto real estate needs, contact Laurin. I am dedicated to helping you find that perfect and unique new home to call your own.

 

Vancouver real estate cools – could Toronto be next?

CBC News

Prices continue to rise in Canada’s two largest real estate markets, but a closer look at the numbers shows two housing markets headed in different directions.

Both cities have been singled out by the Canadian Real Estate Association for either skewing the national numbers higher and lower in recent months. And both cities remain among the hottest real estate markets in the country.

And the similarities don’t end there.

Resale prices move higher

On the surface, new data from real estate boards in the two markets shows prices for resale homes are indeed still rising. In Toronto, the average price of a resale home was $517,556 in April — an 8.5% increase from the same month a year earlier.

The average price in Vancouver, meanwhile, was $683,800 in April, up 3.7% compared to a year ago.

Rising prices are broadly perceived to be the surest sign of a buoyant housing market, but the number of homes sold — and the number of homes listed for sale — tell a different story.

In Vancouver, there were 2,799 sales on the Multiple Listings Service last month. That’s a 13.2% decline from the 3,225 homes sold the same month a year earlier. Indeed, the number of homes sold in April in Vancouver is the lowest total for that month since 2001, the Real Estate Board of Greater Vancouver (REBGV) noted in a release this week.

“Although April sales were below what’s typical for the month, we continue to see… a balanced relationship between buyer demand and seller supply in our marketplace,” REBGV president Eugen Klein said.

Others are not so sure. Real estate analyst Ben Rabidoux with M Partners says the drop-off in sales even as more homes come on the market is a trend worth noting. New Vancouver listings totaled 6,056 in April, more than double the number of homes sold and a 3.6% increase on the level a year earlier.

The new listings figure is 6.7% above the 10-year average for the month.

Comment: So Vancouver has the opposite problem as Toronto. Listings are up – increasing supply – while sales and prices slow down. In Toronto, we have low levels of listings, pushing sales and prices up.

“This is something I’ve been watching for a while,” Rabidoux said. “Inventory is ratcheting up even as sales are falling.”

An increase in listings can sometimes be a sign of a market top, as people are eager to sell to lock in gains they’ve earned in a widely acknowledged strong housing market.

If the level of willing buyers for all those new listings can’t keep up, it can create a buyer’s market with more sellers than buyers. Prices are still in positive territory but that’s unlikely to continue if such a large gap between buyers and sellers persists.

Contrast that with Toronto, where the number of sales continues to increase at a rapid pace — up 18% to 10,350 in April. Yet the number of listings was up by almost as much, nearly 15% to 16,436.

Comment: But that is only one month, taken out of context. Month after month, year after year, listings have lagged behind sales. That is why there are 10 buyers for every listing. If sales were up 5%, listings were up 4% – or even down. That gap has been growing for a LONG time.

An increase in listings is a relatively new trend in Toronto, and it mirrors what happened in Vancouver about a year ago, Rabidoux notes. “It hasn’t been substantial enough to make a dent yet, but it’s noteworthy because that’s what happened in Vancouver,” he said. “Listings took off before sales died.”

Comment: One month, people, one month.

To be sure, a change in the market’s overall direction isn’t showing up yet in prices. The numbers suggest there’s still ample demand for housing in Canada’s largest city.

“Interest in single-detached homes has been very high, both in the City of Toronto and surrounding regions,” Toronto Real Estate Board president Richard Silver said. Prices for detached homes in the GTA were up 9% in the month, TREB noted in a release this week.

If there’s any weakness in the Toronto market, it’s likely in the condo sector, Rabidoux said. The average price of a condo across the 416 and 905 area codes was $339,978 in April, up 4%.

Comment: Yes, because supply is not limited in condos. There are more for sale, so less pressure on prices. Never mind all of the new developments.

Finance Minister Jim Flaherty noted the city’s condo market was one of the government’s primary concerns in wanting to rein in control of Canada’s national housing agency last week.

Comment: And yet it is slowing down, of its own volition. He needs to be worried about the houses in trendy areas!

On a square-foot basis, new condo prices actually declined in Toronto in the first quarter of 2012. That’s the first time that’s happened since 2009, Rabidoux said.

“Condos are usually the canary in the coal mine,” he said. “The whole Toronto story feels like it’s been recycled from Vancouver 18 months ago.”

Comment: Except for the prices – which are more than 32% lower in Toronto than Vancouver. We have a LONG way to go to get to their lofty levels.

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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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