Toronto’shousing market roared back to life in the first half of 2010, withsingle-detached homes and condominium apartments and townhouses postingunprecedented double-digit gains in average price in most districts, accordingto a report released by RE/MAX Ontario-Atlantic Canada. This is in starkcontrast to the July 2009 RE/MAX report that found that values in approximately80 per cent of neighbourhoods surveyed in Toronto had depreciated over the sameperiod in 2008.
RE/MAXexamined 63 Toronto Real Estate Board (TREB) districts in the single-detachedcategory between January and June of 2010 and found that 85.7 per centexperienced double-digit gains. Mississauga’s Lorne Park (W13) led interms of percentage increase in average price with a 30.2 per cent upswing inthe 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 closethird at 27.5 per cent (rising to $732,535 from $574,599 in 2009 and $589,808one year earlier). Mississauga’s Creditview, Erindale area (W16)secured fourth spot with an average price of $561,973—up 26.5 per cent over2009’s $444,221 and 2008’s $476,877. Rounding out the top five wasYork Mills, Hogg’s Hollow, Bridle Path (C12) with a 26.2 per cent increase overlast year and an average price of $1,868,591 (vs. $1,480,296 in 2009 and$1,580,851 in 2008).
Whilefirst-time buyers dominated housing markets during the first half of 2009,move-up buyers ruled during January to June of 2010. Rising interestrates and the introduction of the Harmonized Sales Tax (HST) in the provincehelped drive activity, with more than 50,000 sales reported year-to-date—afigure on par with record 2007 levels.
As in yearspast—the exception being 2009—the second half of the year will be moretempered, with price appreciation moderating somewhat in most neighbourhoods.The one exception to the rule will be the hot pocket areas that continue toexperience limited inventory.
Withaffordability a growing issue for many in the Toronto market, the city’s vastsupply of existing condominium apartments and townhomes offer a financiallyattractive alternative. Like single-detached homes, however,condominium prices were on the upswing in the first six months of the year inthe 59 TREB districts examined—with 61 per cent reporting double-digitincreases.
The Danforth,East York (E03) was the top performing condominium market in terms of priceappreciation—with values up 28.2 per cent to $222,421. While theincrease is significant compared to the same period in 2009, it’s a moremoderate 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, bringingaverage price to $653,745—a serious uptick over the 2009 level of $553,302 butonly a nominal 5.6 increase over 2008’s $619,151. Markham (N01) tookthird place with an increase of 22.1 per cent to $332,590 over the 2009 figure($272,316). Bayview Village (C15)—Toronto’s newest condominiumcorridor—saw a 19.6 per cent increase, with values rising to $331,063. NorthYork (C14) continued to experience upward momentum during the first half of theyear, 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.
Overall,single-detached homes in TREB’s North district (north of Steeles Ave.) saw thegreatest percentage increase, with year-to-date average price rising 17.5 percent to $617,723 (compared to $525,635 one year ago). Notsurprisingly, condominium apartments and townhomes in the central coreexperienced the most significant upswing, with average price in TREB’s Centraldistrict rising 16.8 per cent to $385,996, up from $330,517 one year ago.
Bothhousing types experienced serious percentage increases year-over-year – yet itsimportant to keep those price hikes in perspective. Last year, 80per cent of those districts experienced a decline in value. Thebounce-back—fuelled by unprecedented market conditions including a severeshortage in listing inventory—simply returned average prices to their normalcourse.