July 14, 2010
Toronto’s housing market was on fire for the first half of 2010! Single-detached homes, condominiums, and townhomes saw unprecedented double-digit gains in average price in 87.5% of districts.
Condominiums / Townhomes
As affordability continues to be a concern in the City, condominiums and townhomes continue to be a financially attractive alternative to single-detached homes.
According a Re/Max Report:
“The Danforth, East York (E03) was the top performing condominium market in terms of price appreciation – with values up 28.2 per cent to $222,421. While the increase is significant compared to the same period in 2009, it’s a more moderate 15 per cent ahead of the $195,019 reported in 2008.
Yorkville (C02) secured second spot, with a 22.6 per cent increase in values, bringing average price to $653,745 – a serious uptick over the 2009 level of $553,302 but only a nominal 5.6 increase over 2008’s $619,151.
Markham (N01) took third place with an increase of 22.1 per cent to $332,590 over the 2009 figure ($272,316).
Bayview Village (C15) – Toronto’s newest condominium corridor – saw a 19.6 per cent increase, with values rising to $331,063.
North York (C14) continued to experience upward momentum during the first half of the year, with average price on the Yonge St. line up 19.5 per cent to $363,685, compared to the $304,342 reported during the same period in 2009.”
According to the Re/Max report:
“RE/MAX examined 63 Toronto Real Estate Board (TREB) districts in the single-detached category between January and June of 2010 and found that 85.7 per cent experienced double-digit gains.
Mississauga’s Lorne Park (W13) led in terms of percentage increase in average price with a 30.2 per cent upswing in the first six months of the year, bringing year-to-date values in the area to $880,373 (vs. $676,289 in 2009 and $830,041 in 2008).
Markham (N01) ranked second with a 27.7 per cent jump to $779,168 (vs. $610,322 in 2009 and $683,050 in 2008) while Armour Heights, Bathurst Manor (C06) came in a close third at 27.5 per cent (rising to $732,535 from $574,599 in 2009 and $589,808 one year earlier).
Mississauga’s Creditview, Erindale area (W16) secured fourth spot with an average price of $561,973 – up 26.5 per cent over 2009’s $444,221 and 2008’s $476,877. Rounding out the top five was York Mills, Hogg’s Hollow, Bridle Path (C12) with a 26.2 per cent increase over last year and an average price of $1,868,591 (vs. $1,480,296 in 2009 and $1,580,851 in 2008).”
Overall, single-detached homes in TREB’s North district (north of Steeles Ave.) saw the greatest percentage increase, with year-to-date average price rising 17.5 per cent to $617,723 (compared to $525,635 one year ago).
Condominium apartments and townhomes in the central core experienced the most significant upswing, with average price in TREB’s Central district rising 16.8 per cent to $385,996, up from $330,517 one year ago.
First time buyers may have dominated the 2009 market, but Michael Polzler, Executive Vice President, RE/MAX Ontario-Atlantic Canada says that move-up buyers are ruling 2010. He states: “Rising interest rates and the introduction of the Harmonized Sales Tax (HST) in the province helped drive activity, with more than 50,000 sales reported year-to-date – a figure on par with record 2007 levels.”
What will the rest of the year look like? If the market follows previous trends, the balance of the year will have a more tempered market, with a modest price appreciation in most neighbourhoods. But, watch out for pockets with limited inventory, which will continue to see major growth.