Greater Toronto Area (GTA) REALTORS® reported 5,879 transactions through the Toronto MLS system in September 2012. The average selling price for these transactions was $503,662, representing an increase of more than 8.5% compared to last year.
The number of transactions was down by 21% in comparison to September 2011. However, it is important to note that there were two fewer working days in September 2012 compared to September 2011. The majority of transactions are entered on working days. On a per working day basis, sales were down by 12.5% year-over-year.
Condo prices continue to suffer, combine it the 3rd month of dropping sales (27% average this month) and you will see that market is adjusting itself in that area. Though 416 area condo apartments price increase was 8% vs. year ago; 905 are is at just 1% compared to last September. We hear from many lenders, including credit unions that they are no longer offering mortgages with less than 35% down on any apartment condos south of HWY 401. When it gets harder to get financing, you have less buyers and less sales. This could explain (on top of other reasons) the decline on condo market
Townhouses did surprisingly bad in both 416 and 905 area with only 6% price increase on average. Highest price increase was seen in semi-detached houses - 12% on average.
“While sales have been lower due to stricter mortgage lending guidelines, we continue to see substantial competition between buyers. The months of inventory trend remains low from a historic perspective, which explains the strong price increases we are experiencing,” said Toronto Real Estate Board (TREB) President Ann Hannah.
“Barring a major change to the consensus economic outlook, home price growth is expected to continue through 2013. Based on inventory levels, price growth will be strongest for low-rise home types, including single-detached and semi-detached houses and town homes,” said TREB’s Senior Manager of Market Analysis, Jason Mercer.
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As the city of Toronto continues to grow, the demand for condominiums will continue to rise. Even now, the Toronto market is starting to heat up. Now is the right time to jump into the market and snatch up some of Toronto's phenomenal deals while financing rates are at historic lows.
ReplyDeleteCondo Market
The problem with condos now days is that quality of life is not the same as a house (even townhouse). You are absolutely right about great opportunities and low financing rates. And this is why people prefer to go with a house if they can afford it vs condo.
ReplyDeleteThat being said, there is a huge demand for condos from baby boomers and young professionals. But for investment purposes a house would still be a better investment