Home Prices Beginning To Recover Across Canada
GTA REALTORS® reported 4,395 existing home sales for the month of December, bringing the 2010 total to 86,170 – down by 1% compared to 2009. Market conditions were anything but uniform in 2010. We went from super-charged sales activity during the first four months of the year, to a marked drop-off in transactions in the summer and then in the fall saw sales climb back to levels that are sustainable over the longer term. New Federal Government-mandated mortgage lending guidelines, higher borrowing costs and misconceptions about the HST caused a pause in home buying in the summer. As it became clear that the HST was not applicable to the sale price of an existing home and buyers realized that home ownership remained affordable, market conditions improved. The average home selling price in 2010 was $431,463 – up 9% in comparison to the 2009 average selling price of $395,460. In December, the average annual rate of price growth was 5%. At the outset of 2010, we were experiencing annual rates of price growth at or near 20%. This was the result of extremely tight market conditions coupled with the fact that we were comparing prices to the trough of the recession at the beginning of 2009. Balanced market conditions in the second half of 2010 resulted in more moderate home price appreciation. Expect the average selling price to grow at or below 5% in 2011. With this type of growth, mortgage carrying costs for the average priced home in the GTA will remain affordable for a household earning an average income. Home sales in the GTA were spread across a number of different housing types in 2010. Detached homes accounted for 49 % of total sales. Condominium apartments accounted for an additional 25% of sales. Other housing types including townhomes and semi-detached houses accounted for the final 26%. In some areas like TREB’s central districts the mix was quite different, with condominium apartments accounting for 61% of total sales. Ownership housing is available in a diversity of types and price points across the GTA, allowing plenty of choice for first time buyers and experienced home buyers alike. This housing diversity is one factor that continues to make the GTA a popular choice for households and businesses.
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