top_logo

Home | News

Toronto, Hamilton lead real estate recovery

Toronto Star Newspapers
Published on Fri Aug 14 2013

Canadian home resale price gains quickened last month from the slowest pace in almost four years led by gains in Toronto, Hamilton and Calgary.

Canadian home resale prices increased in July, boosted by strong gains in Hamilton and Toronto.

According to the Teranet-National Bank Composite House Price Index, which is a weighted index of 11 cities across Canada, prices increased 1.9 per cent last month from a year earlier.

Toronto saw gains of 3.4 per cent, while Hamilton was up 6.7 per cent.

“Hamilton is an up market by any respect,” said National Bank senior economist Marc Pinsonneault. “The only weakness we see in Toronto is that there many unsold new condos, including those on pre-sale and under construction.

“That’s the only part of the Toronto market that you can say is weak,” he said.

On a monthly basis, the Teranet-National Bank House Price Index rose only 0.7 per cent in July, weaker than the average increase of 1 per cent seen over the last 12 years.

On a nation-wide basis, home prices have only increased by 1.9 per cent, in part because of a price correction that began in September 2012 and only ended a few months ago, Pinsonneault said.

Although home resale prices are higher than the current rate of inflation, Pinsonneault describes it as “subdued.”

Even if sale prices are lower than usual in August and September, based on the last year’s drop, home price inflation will still rise due to base effects.

However, Pinsonneault anticipates sales are likely to cool in the latter of the half of the year because Canadian banks began to raise interest rates on new mortgages in June, which will have an effect on affordability.

“It will be the worst since the start of the last recession,” he said.

The federal government also instituted new mortgage rules, which went into effect last July, making it tougher for home buyers, but affordability questions were mitigated by low interest rates.

Buyers holding pre-approved mortgages will able to take advantage of better mortgage rates, so the impact on home sales figures may not be felt until later in the year.


 

Source: Toronto Star Newspapers.


Toronto, Hamilton lead real estate recovery

Canadian home resale price gains quickened last month from the slowest pace in almost four years led by gains in Toronto, Hamilton and Calgary....

Toronto real estate sales soar in July

House sales across the GTA reached their highest levels in July for that summer month since 2009, with a 16 per cent surge in sales. It was the third best July for sales on record, says the Toronto Real Estate Board....

Rental housing availability hits 12-year low

Owners of new apartment buildings across Canada are now smiling like Cheshire cats, with rental housing availability at its lowest point in 12 years, according to a new report from Cushman & Wakefield Ltd....

$100,000 parking space for sale in Toronto

The cost of a Toronto parking space has risen beyond the cost of an average car, according to a story in the Toronto Star this week....

Strong Average Price Growth in September

Greater Toronto Area (GTA) REALTORS® reported 5,879 transactions through the TorontoMLS system in September 2012. The average selling price for these transactions was $503,662, representing an increase of more than 8.5 percent compared to last year....

GTA Home Prices Up in July

Greater Toronto REALTORS® reported 7,570 sales in July 2012, representing a decline of 1.5 per cent compared to 7,683 sales reported in July 2011. The decline was most pronounced in the condominium apartment segment in the City of Toronto. Total sales in the rest of the Greater Toronto Area (GTA) were up compared to the same period last year...

Economists to condo investors: Smile!

Condo investors in Toronto have every reason to be keep smiling, with two separate bank reports suggesting their assets are almost certain to retain their value at the same time their cash flow get buoyed by rental demand...

Extended low rates to benefit only some investors

Whoa! Investors expecting the Bank of Canada to up its overnight rate this year, think again, say economists with the Bank of Montreal...

Report: average Canuck has 15 years left on mortgage

A new report suggesting Canadians have an average of 15 years left on their mortgage may support critics of the government move to tighten mortgage rules...

Canadian rental market tightens

Good news? The rental market in Canada tightened slightly in April with the vacancy rate dropping and average rental rates increasing, according to Canada Mortgage and Housing Corporation...

Strong Sales and Price Growth in May

Toronto, June 5, 2012 – Greater Toronto REALTORS® reported 10,850 transactions through the TorontoMLS system in May 2012 – an 11 per cent increase over the 9,766 sales in May 2011. Sales growth was strongest in the ‘905’ regions surrounding the City of Toronto...

Tight Market Drives Double-Digit Price Growth

Greater Toronto REALTORS® reported 9,690 sales through the TorontoMLS system in March 2012. This result was up by almost eight per cent in comparison to the 8,986 deals reported during the same period in 2011.

Bank of Canada keeps interest rates on hold - April 2012

The Bank of Canada kept its trend-setting Bank Rate at 1.25 per cent on April 17th, 2012. While this was the 13th consecutive policy meeting in which borrowing costs have been left unchanged, it was the first time since last September that a policy announcement has included a reference to the possibility of a rate hike.

Tight Market Drives Strong Q1 Rent Increases

Greater Toronto REALTORS reported 3,804 leased condominium partment transactions in the first quarter of 2012, up 11 per cent from the 3,442 units rented during the first three months of 2011.

Supply challenges lift Toronto home prices

The appetite for real estate in Toronto has continued to grow, but supply is lagging behind, putting upward pressure on prices, according to the latest stats.

 

 


Home    |    Exclusive Listings     |    Buyer    |    Seller     |    New Condos    |    Condo Assignment        

footer