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So, um, when are condo prices supposed to drop again?

GTA REALTORS® report resale record in July

In July 2009, Greater Toronto REALTORS® reported a record 9,967 sales, up 28 per cent from July 2008. The average price for July transactions was $395,414 – up by six per cent compared to the same month last year.

“Households confident in their positioning within the current economic environment have taken advantage of housing affordability in the GTA,” said TREB President Tom Lebour. “The real estate sector has been one of the sectors making a positive contribution to economic growth in the GTA, not to mention Ontario and Canada more broadly.”

Year-to-date sales, at 50,632 are down 1.2 per cent compared to the
first seven months of 2008. Average price, at $385,808 is down by less than one-half of one per cent.

“The steep drop-off in sales experienced at the beginning of the year has all but dissipated,” explained Jason Mercer, TREB’s Senior Manager of Market Analysis. “With five months left to go in the year, it is probable that total existing home sales in 2009 will be at or above last year’s level.”

In July the median price was $339,900, from the $325,000 recorded during July of 2008.

July 2008 unit sales: 7806
July 2009 unit sales: 9967 (+27.7%)

July 2008 average price: $371427
July 2009 average price: $395414 (+6.5%)

July 2008 median price: $325000
July 2009 median price: $339900 (+4.6%)

Year-to-date 2009 average price: $385808 (-<0.5%)
 
Strong Sales Increases Continue in August

In August 2009, Greater Toronto REALTORS® reported 8,035 sales, up 27% per cent from August 2008. The average price for August transactions was $387,921 – up by six per cent compared to the same month last year.

Year-to-date sales, at 58,421 were up two per cent compared to the first eight months of 2008. Average price, at $385,978 was up by less than one-half of one per cent.

August 2008 unit sales: 6318
August 2009 unit sales: 8035 (+27.2%)

August 2008 average price: $364886
August 2009 average price: $387921 (+6.3%)

August 2008 median price: $318000
August 2009 median price: $338000 (+6.3%)

Year-to-date 2009 average price: $385978 (+<0.5%)
Year-to-date 2009 sales: +2% <-- 4th consecutive month of +yoy sales.

Median detached: $420000
Median semi-detached: $330000
Median condo townhouse: $266000
Median condo: $258100
 
$1000 per square foot condo

$3200000 condo

The penthouse at the Prince Arthur building in Toronto's upscale Yorkville neighbourhood is a coveted spot.

At just under 3,200 square feet, it rivals the size of some houses and comes with panoramic views of the city.

Ho said the property was on the market for about a week before the buyer decided to put in an offer. The property was originally listed at $3.5 million.

The sale price of $3.2 million means the buyer paid $1,000 per square foot for his new home. That's a price level that not many existing condo properties have broken this year. Average resale condo prices in the Toronto area are $326 per square foot. New condo prices are typically higher, at $474 per square foot.
 
Eug said:
$3200000 condo

The penthouse at the Prince Arthur building in Toronto's upscale Yorkville neighbourhood is a coveted spot.

At just under 3,200 square feet, it rivals the size of some houses and comes with panoramic views of the city.

Ho said the property was on the market for about a week before the buyer decided to put in an offer. The property was originally listed at $3.5 million.

The sale price of $3.2 million means the buyer paid $1,000 per square foot for his new home. That's a price level that not many existing condo properties have broken this year. Average resale condo prices in the Toronto area are $326 per square foot. New condo prices are typically higher, at $474 per square foot.
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Wow...sounds like now is a good time to sell, after reading that My Home article. Multiple bidding wars, 100-150k over asking, sounds familiar :)
 
MadMax said:
Wow...sounds like now is a good time to sell, after reading that My Home article. Multiple bidding wars, 100-150k over asking, sounds familiar :)
Click to expand...


let's party like it's Toronto 2007; or anywhere USA 2005 ! ! !
 
Mike in TO said:
Unlikely - All new rental housing, whether market housing or social housing will pay the full eight percent tax. The federal government has a GST rental rebate program; currently the province hasn't made any indications as to whether there will be an HST rebate.

Not sure if this has already been mentioned but the current supply of rental housing being built in Toronto is generally investor driven in newly purpose built condos. The HST exemptions under the $400k threshold only applies to 'primary' residences. Unless the province alters this language a $250,000 condo purchased by an investor with the intent of renting the unit will be subject to $15,000 in new taxes (6% in new taxes - approx 2% or $5000 in provincial sales taxes is currently embedded into prices).

So there will be a hit on the rental market for both purpose built rental, social housing and the investor market that supplies the lions share of new rental accomodation in the city.
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Not sure if this has been mentioned already but the latest info in Ontario HST legislation provides for a rebate available for new rental housing, including investment properties to be rented out, for use as primary places of residence. This rebate would apply across all price ranges up to a maximum rebate of up to $24K for housing up to $400K. Above $400K, the full 8% RST applies.

For more info, check out here: http://www.rev.gov.on.ca/english/notices/str/02.html.
 
Last edited:
Sept 2009 416 prices up 11% over Sept 2008.
http://www.torontorealestateboard.c..._news/news2009/pdf/nr_market_watch_sep_09.pdf

However, Sept 2008 prices were down 6% over Sept 2007.
http://www.torontorealestateboard.com/consumer_info/market_news/news2008/nr100308.htm

Therefore a 4% nominal change over two years, and net of inflation a 0% real increase over two years.

In related news, rental rates are down nominally from Sept 2008 4%/1% for 1/2 bedrooms, and therefore down 6%/3% inflation adjusted.
http://www.torontorealestateboard.c.../rental_report/2009/pdf/rental_report0909.pdf

Prices for both 1 & 2 bedrooms are up approx 1% nominally since 2007. (down 3% real)
http://www.torontorealestateboard.com/consumer_info/market_news/rental_report/2007/pdf/rmr0907.pdf
 
Tacoma said:
Not sure if this has been mentioned already but the latest info in Ontario HST legislation provides for a rebate available for new rental housing, including investment properties to be rented out, for use as primary places of residence. This rebate would apply across all price ranges up to a maximum rebate of up to $24K for housing up to $400K. Above $400K, the full 8% RST applies.

For more info, check out here: http://www.rev.gov.on.ca/english/notices/str/02.html.
Click to expand...

Those changes to the HST as it applies to new housing occurred after my initial post (Min Revenue Bulletin on June 18th). Sorry - I should have posted updates here following those enhancements to the HST rebates.
 
I heard on the radio that while prices of detached homes in Toronto are up significantly y-o-y, prices of condos are down a bit.

However, I can't find an article anywhere to confirm that.
 
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