Despite a modest decline in sales forecast for the second half of 2010, Toronto’s house prices are expected to remain steady

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July 7, 2010

The second quarter of 2010 has seen steady price increases, according to the Royal LePage House Price Survey and Market Survey Forecast.

The report states that standard two-storey homes and detached bungalows increased from both the previous quarter as well as year-over-year comparisons to 2009.

While standard condominiums saw averages prices decline from previous quarter, they had increased 7.7 per cent over the second quarter of 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.”

According to Royal LePage:

“In the second quarter of 2010, standard two-storey homes increased 10.5 per cent year-over-year to $589,857 from $533,748 in 2009. Detached bungalows increased 11.4 per cent to $481,933 compared to $432,433 during the same period last year. Standard condominiums were up 7.7 per cent, 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 per cent 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 remainder of the year,” added Romanese.

Moderation may be nice to see for some buyers, as they are used to be bid out of the market. Listing inventory in the GTA as of June 30th has increased from last year’s record low of 18,700 to 23,900, giving potential buyers more choice.

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