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REALNET REVIEW OF 2010 REAL ESTATE RESULTS SHOWS NEW HOME MARKET UP; CONDO MARKET SURGES AHEAD FOR SECOND BEST YEAR EVER Strategic Review of the Greater Toronto Area (GTA) Land & Residential Development Markets from Canada’s Leading Real Estate Information Service
Toronto, January 20, 2011 – RealNet Canada Inc., the most trusted central source for real estate information and information services in Canada, today released its 2010 Strategic Review of the GTA’s high-rise, low-rise and residential land markets.
Among its results, RealNet’s review indicated that the GTA market saw the number of units sold in 2010 increase over last year, by nearly 3,000 units, reaching 36,803 total sales and representing $16.7 billion of value. Among those units sold, the high density sector (made up of apartments, lofts and stacked townhomes) reflected 55% of all units sold while realizing its second best year since 2000. Last year’s market also showed near record low levels of total active inventory. “You can’t sell what you don’t have,” explains RealNet Canada’s President, George M. Carras. “Sales of low rise new homes decreased by 10% over 2009 and faced their second worst year since 2000 due to shortage of serviced lot supplies. The overall number of new home sales climbed, however, for the second straight year increasing by 8% over 2009 as the new condominium market continued its annual sales growth by 30% over 2009 with over 20,000 residences sold. Interestingly, the Downtown West submarket accounted for almost one quarter of the GTA’s total new condominium sales.” The strong performance of GTA’s new condominium sector was further reflected in the pricing milestones the sector achieved in just the first month of last year. “The condominium market roared past the $400,000 average price threshold in January, and closed the year with an average price of $441,663. This demonstrates a year over year growth of approximately 11%,” says George Carras. “The low rise sector, despite slowing sales also pushed its average pricing index to new levels, exceeding the $500,000 threshold in October and closing 2010 at $503,190.” Mattamy Homes registered the highest number of low rise home sales last year with over 1,800 units sold (this figure also made Mattamy the number one builder for overall sales). Tridel led the condominium sector with more than 1,200 sales, followed by Liberty Development Corporation’s 944 units. The 905 area code continues to outpace the 416 in total sales (55% to 45%), but growth of new home development in the City of Toronto continues to climb. “New home growth in the 416 Region is now almost double what it was ten years ago,” adds Carras. “Since the year 2000, the residential development industry in the GTA has seen apartment condominium product increase its total market share by 30%, while over the same period the industry has seen a 16% drop in market share of detached homes (from a 43% share of the market sales in 2000 detached homes account for just 27% in 2010).” There were 233 residential land sales in 2010 totalling $1.4 billion in the various residential land types, including long term land, low density land, medium density land and high density land. The high density land sector saw the largest investments accounting for 46% of the transactions by dollar volume, as capital flows into residential land investments in 2010 increased by 77% over 2009.
About RealNet Canada Inc.
RealNet Canada Inc. is the most trusted central source of real estate information and information services in Canada, in both commercial real estate and new homes and condominiums. RealNet is the official source of real estate information for various organizations including BILD, the Toronto Real Estate Board (TREB), York University Schulich School of Business Program in Real Estate and Infrastructure.
About the RealNet 2010 Strategic Review
The 2010 Strategic Review Report on the GTA Residential Development Market is based on RealNet Canada Inc. research of asset sales of all residential land and residential serviced lot transactions in the GTA over $1 million from January 1, 2000 to December 31, 2010 as well as all active new home projects with more than 15 units in the GTA during the same time period.
