Toronto Condominium Listings - Market Report
The month of May 2010 saw an increase in the number of active listings and a slight decrease in the number of sales in all of the central areas of Toronto (C01-C15).
Is this the first sign of a market correction in the Toronto Condominium market?
To gain some insight into that question we need to look at what has been happening in the market over the last few months.
A shortage of Toronto Condominium Listings resulted in bidding wars and price increases.
A generally heightened awareness of the probable increases in interest rates led to increased activity by Toronto Condominium buyers particularly in the first 3 months of the year.
Changes in mortgage rules by the federal Government also led to more Toronto Condominium buyers entering the market ahead of the April 19 deadline.
And last but not least was the introduction of the dreaded and much publicized Harmonized Sales Tax by the Province of Ontario on July 1 2010.
All of these events coming together in the same time frame created the perfect storm of activity in the Toronto condominium market for the first 4-5 months of the year.
The number of active Toronto Condominium Listings has more than doubled since January while the percentage of sales to those active listings has steadily declined as outlined in the following:
Month Active Listings Sales Percentage of Sales to Active Listings
January 1226 553 45%
February 1478 840 57%
March 1965 1100 56%
April 2407 1012 42%
May 2966 967 32.5%
Percentages have been rounded off.
Where are we headed from here?
The Canadian Real Estate Association is expecting a decrease of 2.2% in price levels in 2011 for the overall marketplace.
Toronto Condominium Listings will continue to sell for the balance of the year but not at the same frenzied pace nor perhaps, at the same price levels.
Comments (0)Subscribe to CommentsComment