Yonge Street defines Toronto's best return on investment neighbourhoods in 2007, says RE/MAX

    Central core homes 'first and foremost' in market performance

    MISSISSAUGA, ON, Aug. 2 /CNW/ - Unprecedented demand for single-detached
homes along the Yonge St. corridor prompted double-digit price increases in
the GTA's top performing neighbourhoods in the first six months of the year,
according to RE/MAX Ontario-Atlantic Canada.
    In total, 56 of the 62 Toronto Real Estate Board Districts examined
reported an increase in the average price of a single-detached home between
January to June 2007, compared to the same period one year ago. Three of the
top five were located in TREB's Central District, while the remaining two were
located in the North and West Districts. Leading the charge was Forest Hill,
Chaplin Estates, Deer Park, and Cedarvale (C03) with a 16.8 per cent increase
over one year ago, bringing average price to a just over one million dollars.
Thornhill, Vaughan (N02) followed in second place with an average price of
$565,428, up 15 per cent versus the same period in 2006. South Hill, Annex,
Yorkville (C02) claimed third spot, with an average price of $883,869,
14.3 per cent ahead of one year ago, while C07 (Lansing, Willowdale,
Newtonbrook) reported a 12.2 per cent upswing to $618,179. Port Credit,
Mineola (W12) secured the fifth position, with an average price 11.3 per cent
ahead of last year's figure at $581,167. Close to half of all GTA districts
are now reporting a single-detached average price in excess of $500,000.
    "The trade-up market is once again heating up in the Greater Toronto
Area," says Michael Polzler, Executive Vice President and Regional Director,
RE/MAX Ontario-Atlantic Canada. "Significant equity gains have been the
impetus behind market activity. As a result, sales and prices continue to
reach new benchmarks. Demand is particularly evident in the central core -
from Bloor St. north to Highway 7 - where average price ranges from $565,000
to well over a million. In fact, nearly 60 per cent of 'C' districts reported
double-digit increases in unit sales for the first half of the year."
    Last year at this time, appreciation had slowed in the central core as
the average price approached $830,000. Buyers were investigating more
affordable alternatives east, north, and west of the city centre. This year,
despite an average closer to $875,000, demand for properties is at an all-time
high in the district and a limited supply of product has purchasers vying for
homeownership. In June, four central districts (C02, C10, C11 and C15)
reported a sales-to-listings ratio above 100 per cent. Multiple offers remain
commonplace on quality, well-priced product, with detached homes selling for
100 per cent of list price or more in all but one central district in June.
    "With affordability a growing concern in the Greater Toronto Area, more
and more purchasers are turning to condominium apartments and townhomes," says
Polzler. "Close to 80 per cent of districts reported an average condominium
price under the $300,000 price point, making the product a more attainable
first step for an entry-level buyer, particularly in sought-after locations."
    Condominium apartments and townhomes have also experienced solid upward
appreciation in 2007, compared to the same period one year ago. Mississauga,
Applewood, Rathwood (W14) escalated a significant 32.7 per cent to just over
$215,000, while Yorkville, Annex, and South Hill (C02) posted an equally
impressive 28.4 per cent increase in average price to $663,688. Port Credit,
Mineola saw a 12.6 per cent hike in condominium prices, now hovering at close
to $284,000, while Cabbagetown and the Distillery District (C08) rose
10.75 per cent to approximately $303,000. Rounding out the top five was
Downsview, Weston (W04) where average price was up 10.5 per cent to $182,000.
    "Home prices will continue their upward trend through to year-end, with
new records expected for most TREB districts in 2007," says Polzler. "The
escalation has been spurred in large part by significant demand, but infill
and renovation has also served to bolster appreciation in a number of
neighbourhoods. Buyer enthusiasm is extraordinary, sparked by economic
prosperity, job security, inheritance, as well as equity and stock market
gains. To date, 51 per cent of districts reported double-digit sales gains for
detached homes and 44 per cent for condominiums. It's been another banner year
for real estate, and it's far from over."

    RE/MAX is Canada's leading real estate organization with over 16,690
sales associates situated throughout its more than 625 independently owned and
operated offices across the country. The RE/MAX franchise network, now in its
34th year of consecutive growth, is a global real estate system operating in
over 67 countries. More than 6,890 independently owned offices engage 120,520
member sales associates who lead the industry in professional designations,
experience and production while providing real estate services in residential,
commercial, referral, relocation and asset management. For more information,
visit: www.remax.ca

    Note: All statistics sourced from the Toronto Real Estate Board and
    Districts that recorded less than 100 sales year-to-date were discounted
    to prevent the reporting of statistical anomalies.

               Top Five Districts by Average Price Appreciation

                    Average Price                       Unit Sales
                  2006         2007   % +/-       2006       2007      % +/-
    C03     $  895,900   $1,046,500   16.81        223        208      11.21
    N02     $  491,352   $  565,428   15.08        286        316      10.49
    C02     $  773,283   $  883,869    14.3        106        120      13.21
    C07     $  550,942   $  618,179    12.2        213        246      15.49
    W12     $  521,875   $  581,167   11.36        287        303       5.57

    Condominiums (Apartments & Town Homes)
                    Average Price                       Unit Sales
                  2006         2007    % +/-       2006      2007      % +/-
    W14     $  161,973   $  215,077    32.79        171       198      15.79
    C02     $  516,729   $  663,688    28.44        173       168      -2.89
    W12     $  252,059   $  283,935    12.65        193       216      11.92
    C08     $  273,754   $  303,186    10.75        667       697        4.5
    W04     $  165,328   $  182,771    10.55        174       160      -8.05
    Source: RE/MAX, TREB
    (*) Based on districts reporting sales over 100 units year-to-date

For further information:

For further information: Christine Martysiewicz, RE/MAX Ontario-Atlantic
Canada, (905) 542-2400; Eva Blay, Charlene McAdam, Kim Kofman, Point Blank
Communications, (416) 781-3911

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