MISSISSAUGA, ON, July 17, 2013 /CNW/ - Affordability remained the
strongest driver of residential housing in the Toronto market in the
first half of 2013, with single-detached homes in neighbourhoods east
and west of the central core posting the best overall performances,
according to RE/MAX Ontario-Atlantic Canada.
RE/MAX examined 35 Toronto Real Estate Board districts between January
and June of 2013 and found that single-detached housing values had
appreciated year-over-year in close to 86 per cent of neighbourhoods in
the 416 area code (30/35 districts). While the central core
experienced the highest percentage gains in Don Mills,
Parkwoods-Donalda, and Victoria Village (C13) at 12.7 per cent
($1,105,574 vs. $980,727) and Oakwood-Vaughan, Humewood-Cedarvale, and
Forest Hill South (C03) at 11.7 per cent ($1,324,608 vs. $1,186,320),
these were the only markets in the core that experienced significant
growth. On the other hand, average prices increased across the board
in both the west and eastern districts—with gains ranging from just
under one per cent to 10 per cent. Rounding out the top five for
average price appreciation were the west-end neighbourhoods of
Keelesdale, Eglinton West, Weston-Pellam Park (W03), posting a gain of
10.2 per cent (to $457,079); followed by Sunnylea, The Queensway,
Humber Bay (W07), where prices climbed 9.4 per cent (to $833,026); and
York, Glen Park, Amesbury, Brookhaven, Weston and Fairbank (W04), with
a 9.2 per cent increase (to $538,469). Competition was clearly evident
in the city's top five neighbourhoods. In June alone, 46 per cent of
detached homes that sold between $400,000 and $1 million changed hands
for over list price.
To view heat maps of Toronto's top neighbourhoods by average price
(detached and condo), click here: http://rem.ax/18bEiMP.
"While we have seen solid price appreciation virtually across the board
in the single-detached housing category, the most pronounced gains were
in affordably-priced areas in the city," says Gurinder Sandhu,
Executive Vice President, Regional Director, RE/MAX Ontario-Atlantic
Canada. "In many of these areas, inventory played a role in hampering
sales activity, placing further upward pressure on pricing. The top
five neighbourhoods reported days on market ranging from 13 to 18 in
June—well below the 24 days reported for the overall GTA—and a
sale-to-list-price ratio of over 100 per cent in three of the top
Of the 35 City of Toronto markets highlighted, just 14 per cent saw an
increase in unit sales activity, as supply hampered buyer intentions.
New listings for detached homes fell another two per cent in the city
proper during the first six months of 2013, exacerbating already tight
conditions. Those areas that bucked the sales trend included
Riverdale, Danforth (E01), up 13.4 per cent (127 vs. 112 units) with an
average price of $727,497; Sunnylea, Queensway, Humber Bay (W07), up
4.2 per cent (150 vs. 144 units) with an average price of $833,026;
Agincourt North (E07), up 3.8 per cent (164 vs. 158 units) with an
average price of $598,826; Birchcliffe, Oakridge, Cliffside, Hunt Club
(E06), up 1.6 per cent (196 vs. 193) with an average price of $579,596;
while The Beach, Woodbine Corridor (E02) was virtually on par (157 vs.
158), with an average price of $863,090.
Single-detached homes seriously contributed to overall percentage
increases in average price in the 416 during the first half of the
year, compared with the same period one year ago. The west end
reported a year-to-date increase of close to six per cent in average
price, now hovering at $691,807. The east end also posted an increase
approaching six per cent, with an average price of $580,270. By far
the most expensive real estate can be found in the central core, where
average price was up a more modest four per cent to $1,294,298.
Despite the solid gains made in the single-detached category,
condominium apartments and townhomes were less marked, with 66 per cent
of TREB districts reporting year-over-year increases in average price.
The city's west districts were the clear winners, with nine out of ten
areas reporting upward momentum. On the whole, price increases in the
condominium segment were generally more muted, with more than half of
appreciating areas realizing growth under three per cent. Don Mills,
Parkwoods-Donalda, and Victoria Village(C13) claimed the top spot in
the condominium/townhouse category. Average price per unit in the area
rose 5.7 per cent to $335,818. Leaside, Thorncliffe Park, Flemingdon
Park (C11) placed second, rising 5.1 per cent to $233,947. Agincourt
North (E07) advanced 4.1 per cent, with the average price now at
$257,603, while Richview, Humber Heights and Kingsview Village (W09)
experienced a 3.9 per cent jump to $210,750. Tied for fifth place were
the East district neighbourhoods of Steeles, L'Amoreaux, and Tam
O'Shanter - Sullivan (E05) and Malvern, Rouge (E11), both posting
increases of 3.2 per cent, with average price at $285,147 and $207,574
"Condominium sales and price growth in the City of Toronto continues to
be weighed down by softer demand, especially as tighter lending
restrictions have impacted the entry-level price points to a greater
extent," says Sandhu. "A good selection of product exists and buyers
have more time to make decisions. Yet, condominium units in hot pocket
neighbourhoods are generally being snapped up within 15 to 30 days.
Sales to list price ratios are averaging 98 per cent for
apartment-style units and 99 per cent for townhomes. Both are signs
that the market remains healthy. While the Bank of Canada has
expressed concerns, solid fundamentals continue to prop up the condo
segment, including affordability, new household formation, immigration,
a reduction in low-rise starts and tight vacancy rates."
Following the citywide trend, just 17 per cent of neighbourhoods in
Toronto's condominium/townhouse market saw sales move ahead of year-ago
levels in the first half of 2013. Bloor West Village, High Park North,
Baby Point, and the Junction (W02) showed the strongest uptick in
activity, with sales advancing nine per cent (145 units vs. 133).
Riverdale, Danforth, Leslieville (E01) claimed second place, as the
number of units sold climbed 6.7 per cent (112 vs. 105) year-over-year,
while Leaside, Thorncliffe Park and Flemingdon Park saw sales jump 4.9
per cent to 150 units (from 143).
"There's no question that Toronto's real estate market is demonstrating
a trend toward moderation," notes Sandhu. "That said, prices continue
to edge higher in the bulk of Toronto neighbourhoods, fuelled by
certain market realities. Given the city's ongoing evolution, the
long-term outlook remains positive, particularly as land availability
declines while the population within the 416 climbs. As prices rise, so
too will the appeal of Toronto's more affordable areas.
Revitalization—including renovation, rebuilding and repurposing—is
evident in just about every corner of the city. Toronto is moving on
up in more ways than one."
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SOURCE: RE/MAX Ontario-Atlantic Canada
For further information:
RE/MAX Ontario-Atlantic Canada
Eva Blay/Charlene McAdam
Point Blank Communications