Survey says: Add a few more dollars to your house hunt budget

A housing market tilted heavily in favour of sellers pushed Toronto real estate prices up sharply in the opening months of 2014, but, so far in April, buyers appear to be gaining clout, says John Pasalis, president of Realosophy Realty Inc.

The spring survey of home values, tallied exclusively for Globe Real Estate by Realosophy, shows that prices jumped about 10 per cent in the Toronto area in the first quarter compared with the same period in 2013. Among the hottest neighbourhoods for price appreciation are Allenby, the Danforth, Danforth Mosaic, Christie Pits and Regal Heights.

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The coolest are the condo-packed areas such as the Entertainment District, Cityplace, Fort York, the Financial District and the Distillery District.

In coming up with the rankings, Mr. Pasalis looked at such factors as the number of days the average property stayed on the market, the percentage above asking or below asking that the seller received, and the percentage of properties that sold above the list price in a given area.

Mr. Pasalis points out that, sometimes, a wild swing in values in a particular area can result from a shift in the mix of housing types that happened to sell during the period. In an area such as the Annex, for example, where the average price dropped 24 per cent, last year’s number could have had a boost from the sale of one multimillion dollar mansion. Conversely, a condo building could have recently come on-stream, which would pull down the average if this year a rush of units sold for less than neighbouring houses.

The most intense competition still tends to take place in the range between $500,000 and $800,000, but segments above that price are also busy.

For example, drilling into the numbers for Allenby, where prices rose 11 per cent year-over-year, Mr. Pasalis finds that 83 per cent of the properties received multiple offers and the average property was on the market only five days. He adds that the gain is noteworthy because prices in the area are already fairly lofty: The average price came in at $1,158,667. The neighbourhood is popular with families who are willing to pay a premium for a detached house close to Allenby Junior Public School.

Mr. Pasalis says Allenby represents a lot of neighbourhoods where properties commonly change hands at prices north of $1-million and where homeowners have seen significant appreciation. “This isn’t just the affordable ones,” he says of the areas seeing values swell.

In the neighbourhood stretching out from Danforth and Coxwell avenues known as Danforth Mosaic, the average selling price was a relatively reasonable $629,490. Ninety per cent of properties received multiple offers and typically sold for 112 per cent of the asking price in nine days.

Mr. Pasalis says the area is popular because it’s more affordable than many of the others along the Bloor-Danforth subway line. “It’s still relatively manageable for a dual-income family,” he says of the average price.

The neighbourhoods considered coolest in the rankings of price appreciation tend to be those where buyers have lots of choice. If they can’t negotiate a deal on one condo unit, they know plenty of others are available in the same building or surrounding area.

In the Financial and Distillery districts, for example, virtually no properties sold for more than the asking price. In Cityplace, Fort York and the Entertainment District, about 2 per cent did. The average days on market ranges from 26 in the Financial District to 39 in the Entertainment District. The units in these areas typically sell for 96 to 98 per cent of the asking price.

Since the survey was completed, signs are pointing to a slightly calmer April market. It’s been a while since we’ve heard about a house with 28 or 30 offers. Mr. Pasalis says houses that would have received 10 to 15 offers back in February are now receiving five to seven offers.

“A month ago, 20 buyers would line up to compete for the one nice house taking offers on any given night. Today, there are two to three nice houses taking offers on the same night, which means we are seeing five to seven offers for each house rather than 20 offers on one house.”

Mr. Pasalis points out that, while sales rose 4 per cent in March from the same month last year, they are well below levels reached in 2011 and 2012.

Last week, he represented a seller who received four offers on a condo townhouse in Brockton Village. Mr. Pasalis did not set an offer date so one buyer stepped up on the first day the unit arrived on the market and made an offer good for 24 hours. The following day, three more buyers saw the unit between 6 p.m. and 7 p.m. – then rushed to have their bids on the table by 8 p.m. Despite the last-minute flurry, the first bidders secured the deal by increasing their original offer to a small amount above the asking price.

Since March break, the action has cooled a bit as new listings have gradually trickled onto the market and approximately 18,000 buyers who bought in the first three months of the year have left the melee, Mr. Pasalis says. “It was just ridiculous,” he says of the heated activity and eye-popping amounts above asking that were registered in January, February and the first half of March.

New listings, meanwhile, edged up 1 per cent in March compared with March, 2013. For the year to date, listings have shrunk 5 per cent from a year earlier.

When Mr. Pasalis takes a deeper look at the numbers, he finds that new listings for semi-detached houses declined 11 per cent in the first three months of the year compared with the same period last year. So many of the properties that generated skirmishes involving 25 or more bidders and sold for 10 to 20 per cent above the asking price were semi-detached, he points out.

He adds that, in many cases, the listing agent stirred up a bidding frenzy by listing the property at an eye-catching low price. Many agents and potential buyers are worn out by the commotion created when a house is listed with an asking price of $599,000 instead of closer to the $725,000 that it’s likely to fetch in the current market, he adds. “It’s a really bad practice.”

Meanwhile, he has seen a couple of houses that didn’t sell at all on the designated night for receiving offers. A couple of weeks later, they are back on the market at a higher asking price. What likely happened, he says, is that the sellers received a bunch of offers close to the asking price but that price was never realistic. “Despite the fact that they had six offers at $599,000, the sellers really wanted $725,000.”

Mr. Pasalis says such a scenario wastes the emotional energy of all the bidders and alienates everyone who was interested in the property.

It’s hard to forecast what the volume of listings will be like in the second half of the spring market he adds, but he thinks many house hunters and agents will be relieved if a more stable market emerges. “Nobody likes it when it’s completely insane. It’s not a fun experience for most buyers.”

Follow me on Twitter @carolynireland

Article source: http://www.theglobeandmail.com/life/home-and-garden/real-estate/survey-says-add-a-few-more-dollars-to-your-house-hunt-budget/article18053115/?cmpid=rss1

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Survey says: Add a few more dollars to your house hunt budget

A housing market tilted heavily in favour of sellers pushed Toronto real estate prices up sharply in the opening months of 2014, but, so far in April, buyers appear to be gaining clout, says John Pasalis, president of Realosophy Realty Inc.

The spring survey of home values, tallied exclusively for Globe Real Estate by Realosophy, shows that prices jumped about 10 per cent in the Toronto area in the first quarter compared with the same period in 2013. Among the hottest neighbourhoods for price appreciation are Allenby, the Danforth, Danforth Mosaic, Christie Pits and Regal Heights.

More Related to this Story

The coolest are the condo-packed areas such as the Entertainment District, Cityplace, Fort York, the Financial District and the Distillery District.

In coming up with the rankings, Mr. Pasalis looked at such factors as the number of days the average property stayed on the market, the percentage above asking or below asking that the seller received, and the percentage of properties that sold above the list price in a given area.

Mr. Pasalis points out that, sometimes, a wild swing in values in a particular area can result from a shift in the mix of housing types that happened to sell during the period. In an area such as the Annex, for example, where the average price dropped 24 per cent, last year’s number could have had a boost from the sale of one multimillion dollar mansion. Conversely, a condo building could have recently come on-stream, which would pull down the average if this year a rush of units sold for less than neighbouring houses.

The most intense competition still tends to take place in the range between $500,000 and $800,000, but segments above that price are also busy.

For example, drilling into the numbers for Allenby, where prices rose 11 per cent year-over-year, Mr. Pasalis finds that 83 per cent of the properties received multiple offers and the average property was on the market only five days. He adds that the gain is noteworthy because prices in the area are already fairly lofty: The average price came in at $1,158,667. The neighbourhood is popular with families who are willing to pay a premium for a detached house close to Allenby Junior Public School.

Mr. Pasalis says Allenby represents a lot of neighbourhoods where properties commonly change hands at prices north of $1-million and where homeowners have seen significant appreciation. “This isn’t just the affordable ones,” he says of the areas seeing values swell.

In the neighbourhood stretching out from Danforth and Coxwell avenues known as Danforth Mosaic, the average selling price was a relatively reasonable $629,490. Ninety per cent of properties received multiple offers and typically sold for 112 per cent of the asking price in nine days.

Mr. Pasalis says the area is popular because it’s more affordable than many of the others along the Bloor-Danforth subway line. “It’s still relatively manageable for a dual-income family,” he says of the average price.

The neighbourhoods considered coolest in the rankings of price appreciation tend to be those where buyers have lots of choice. If they can’t negotiate a deal on one condo unit, they know plenty of others are available in the same building or surrounding area.

In the Financial and Distillery districts, for example, virtually no properties sold for more than the asking price. In Cityplace, Fort York and the Entertainment District, about 2 per cent did. The average days on market ranges from 26 in the Financial District to 39 in the Entertainment District. The units in these areas typically sell for 96 to 98 per cent of the asking price.

Since the survey was completed, signs are pointing to a slightly calmer April market. It’s been a while since we’ve heard about a house with 28 or 30 offers. Mr. Pasalis says houses that would have received 10 to 15 offers back in February are now receiving five to seven offers.

“A month ago, 20 buyers would line up to compete for the one nice house taking offers on any given night. Today, there are two to three nice houses taking offers on the same night, which means we are seeing five to seven offers for each house rather than 20 offers on one house.”

Mr. Pasalis points out that, while sales rose 4 per cent in March from the same month last year, they are well below levels reached in 2011 and 2012.

Last week, he represented a seller who received four offers on a condo townhouse in Brockton Village. Mr. Pasalis did not set an offer date so one buyer stepped up on the first day the unit arrived on the market and made an offer good for 24 hours. The following day, three more buyers saw the unit between 6 p.m. and 7 p.m. – then rushed to have their bids on the table by 8 p.m. Despite the last-minute flurry, the first bidders secured the deal by increasing their original offer to a small amount above the asking price.

Since March break, the action has cooled a bit as new listings have gradually trickled onto the market and approximately 18,000 buyers who bought in the first three months of the year have left the melee, Mr. Pasalis says. “It was just ridiculous,” he says of the heated activity and eye-popping amounts above asking that were registered in January, February and the first half of March.

New listings, meanwhile, edged up 1 per cent in March compared with March, 2013. For the year to date, listings have shrunk 5 per cent from a year earlier.

When Mr. Pasalis takes a deeper look at the numbers, he finds that new listings for semi-detached houses declined 11 per cent in the first three months of the year compared with the same period last year. So many of the properties that generated skirmishes involving 25 or more bidders and sold for 10 to 20 per cent above the asking price were semi-detached, he points out.

He adds that, in many cases, the listing agent stirred up a bidding frenzy by listing the property at an eye-catching low price. Many agents and potential buyers are worn out by the commotion created when a house is listed with an asking price of $599,000 instead of closer to the $725,000 that it’s likely to fetch in the current market, he adds. “It’s a really bad practice.”

Meanwhile, he has seen a couple of houses that didn’t sell at all on the designated night for receiving offers. A couple of weeks later, they are back on the market at a higher asking price. What likely happened, he says, is that the sellers received a bunch of offers close to the asking price but that price was never realistic. “Despite the fact that they had six offers at $599,000, the sellers really wanted $725,000.”

Mr. Pasalis says such a scenario wastes the emotional energy of all the bidders and alienates everyone who was interested in the property.

It’s hard to forecast what the volume of listings will be like in the second half of the spring market he adds, but he thinks many house hunters and agents will be relieved if a more stable market emerges. “Nobody likes it when it’s completely insane. It’s not a fun experience for most buyers.”

Follow me on Twitter @carolynireland

Article source: http://www.theglobeandmail.com/life/home-and-garden/real-estate/survey-says-add-a-few-more-dollars-to-your-house-hunt-budget/article18053115/

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Average Price For A Single-Family Home In Toronto Passes $1 Million

Economists are coming out with warnings that Canada’s real estate juggernaut is about to come to an end (Scotiabank’s Adrienne Warren is just the latest) and others keep fretting about Canada’s record-high household debt levels, but Toronto residents don’t seem to be listening.

Home sales in the country’s largest metro area roared back to life in the first quarter of 2014, according to data from Realnet Canada, with total sales jumping 60 per cent from the same period a year earlier. Condo sales were up 68 per cent and low-rise homes up 51 per cent.

And numbers from the Toronto Real Estate Board show the city’s housing market has passed a major milestone: It now costs more than $1 million to buy an average single-family home — $1,012,172 to be exact.

Prices for standalone homes soared by a stunning 19.2 per cent in the past year. By comparison, condo prices were flat, up 0.2 per cent, to an average of $386,874. These two markets appear to be diverging completely, with warnings of overbuilding in the condo market and warnings of a shortage of standalone homes. Even though sales and prices of single family homes are way up, total sales are actually below the 10-year average — there simply aren’t enough single family homes for everyone who wants one.

A sharp steepening in price growth, like in Toronto’s standalone house prices, should raise concerns about a housing bubble. As this chart from BMO economist Doug Porter shows, bubbles tend to be marked by an unreasonable acceleration in price growth. Here, Toronto house prices can be seen rising very sharply before the housing bubble burst of the early 1990s:

bmo toronto home prices

But in the case of Toronto’s standalone housing market, the recent price spike may just be the result of the increasingly severe shortage of new single-family homes.

Land use policies favouring high density development, growing suburban commute times and other factors are prompting developers to build townhomes and condos rather than single-family homes, and the number of standalone houses being built around the GTA is on a long-term downward trend.

Toronto’s real estate board notes that, even at these price levels, the average household can still afford a mortgage on an average house — but, of course, they mean a mortgage on an average condo.

And that affordability depends on mortgage rates remaining at rock-bottom levels. As numerous economists recently predicted, with the U.S. economy on the rebound and Canadian fixed-rate mortgage rates dependent on U.S. bond yields, Canadian mortgage rates are likely headed up soon.

And when that happens, we likely won’t be seeing any more 19-per-cent price hikes. And as BMO noted in a recent report, with Canada more dependent on real estate jobs than any other G7 country, a housing slowdown could be bad news for the economy.

So make sure you can actually afford that mortgage when buying into Toronto’s million-dollar home market.

Also on HuffPost:

Loading Slideshow

  • Calgary: 3-bedroom house

    strong$1.08 million:/strong Located in the trendy Altadore neighbourhood of Calgary, this as-yet-unbuilt modernist house features views of the downtown core as well as a personal elevator.

    Source: Keller Williams Realty

  • Calgary: 3-bedroom house

    strong$1.08 million:/strong Located in the trendy Altadore neighbourhood of Calgary, this as-yet-unbuilt modernist house features views of the downtown core as well as a personal elevator.

    Source: Keller Williams Realty

  • Calgary: 3-bedroom house

    strong$1.08 million:/strong Located in the trendy Altadore neighbourhood of Calgary, this as-yet-unbuilt modernist house features views of the downtown core as well as a personal elevator.

    Source: Keller Williams Realty

  • Toronto: 1-bedroom condo

    strong$988,000:/strong Located in the posh Residences of the Ritz Carlton, in the heart of Toronto, this condo features one of only a handful of private terraces in the entire building.

    Source: Sotheby’s International

  • Toronto: 1-bedroom condo

    strong$988,000:/strong Located in the posh Residences of the Ritz Carlton, in the heart of Toronto, this condo features one of only a handful of private terraces in the entire building.

    Source: Sotheby’s International

  • Toronto: 1-bedroom condo

    strong$988,000:/strong Located in the posh Residences of the Ritz Carlton, in the heart of Toronto, this condo features one of only a handful of private terraces in the entire building.

    Source: Sotheby’s International

  • Montreal: 4-bedroom rowhouse

    strong$998,000:/strong This historic townhouse in the wealthy enclave of Westmount is “of historic interest,” according to the realtor, and features its original glass doors and marble panels at the entrance.

    Source: Sotheby’s International

  • Montreal: 4-bedroom rowhouse

    strong$998,000:/strong This historic townhouse in the wealthy enclave of Westmount is “of historic interest,” according to the realtor, and features its original glass doors and marble panels at the entrance.

    Source: Sotheby’s International

  • Montreal: 4-bedroom rowhouse

    strong$998,000:/strong This historic townhouse in the wealthy enclave of Westmount is “of historic interest,” according to the realtor, and features its original glass doors and marble panels at the entrance.

    Source: Sotheby’s International

  • West Vancouver: 1-bedroom condo

    strong$985,000:/strong The real estate agent boasts that this property offers a “spectacular 180 degree view of the city, Lions Gate Bridge, Stanley Park, Kitsilano, Point Grey and beyond to Vancouver Island.”

    Source: Angell Hasman Realty

  • West Vancouver: 1-bedroom condo

    strong$985,000:/strong The real estate agent boasts that this property offers a “spectacular 180 degree view of the city, Lions Gate Bridge, Stanley Park, Kitsilano, Point Grey and beyond to Vancouver Island.”

    Source: Angell Hasman Realty

  • West Vancouver: 1-bedroom condo

    strong$985,000:/strong The real estate agent boasts that this property offers a “spectacular 180 degree view of the city, Lions Gate Bridge, Stanley Park, Kitsilano, Point Grey and beyond to Vancouver Island.”

    Source: Angell Hasman Realty

  • Charlottetown, P.E.I.: 8-bedroom house

    strong$998,700:/strong This historic property was once the Edenhurst Inn and is now on sale as a private residence. “No expense was spared in the construction of this home using sycamore and oak for interior finishing,” the realtor says.

    Source: Re/Max Charlottetown

  • Charlottetown, P.E.I.: 8-bedroom house

    strong$998,700:/strong This historic property was once the Edenhurst Inn and is now on sale as a private residence. “No expense was spared in the construction of this home using sycamore and oak for interior finishing,” the realtor says.

    Source: Re/Max Charlottetown

  • Charlottetown, P.E.I.: 8-bedroom house

    strong$998,700:/strong This historic property was once the Edenhurst Inn and is now on sale as a private residence. “No expense was spared in the construction of this home using sycamore and oak for interior finishing,” the realtor says.

    Source: Re/Max Charlottetown

  • Winnipeg: 4-bedroom house

    strong$989,900:/strong This modernist mansion from custom home designers Artista Homes features three fireplaces, including a three-sided one, and ensuite bathrooms with heated floors.

    Source: Royal LePage Alliance

  • Winnipeg: 4-bedroom house

    strong$989,900:/strong This modernist mansion from custom home designers Artista Homes features three fireplaces, including a three-sided one, and ensuite bathrooms with heated floors.

    Source: Royal LePage Alliance

  • Kamloops, B.C.: 2-bedroom ranch house

    strong$960,000:/strong This ranch house inspired by the “pueblo” style of the U.S. southwest is located in one of the few places in Canada that look like the southwest U.S. — the B.C. interior. The house features foot-thick concrete walls, and is set into the hillside to look half-buried.

    Source: Royal LePage Kamloops

  • Kamloops, B.C.: 2-bedroom ranch house

    strong$960,000:/strong This ranch house inspired by the “pueblo” style of the U.S. southwest is located in one of the few places in Canada that look like the southwest U.S. — the B.C. interior. The house features foot-thick concrete walls, and is set into the hillside to look half-buried.

    Source: Royal LePage Kamloops

  • Kamloops, B.C.: 2-bedroom ranch house

    strong$960,000:/strong This ranch house inspired by the “pueblo” style of the U.S. southwest is located in one of the few places in Canada that look like the southwest U.S. — the B.C. interior. The house features foot-thick concrete walls, and is set into the hillside to look half-buried.

    Source: Royal LePage Kamloops

  • Montreal: 5-bedroom townhouse

    strong$985,000:/strong The realtor humbly describes this property as a “cottage in Westmount,” but with five bedrooms, four baths and parking for two, this “cottage” is pretty out-sized.

    Source: Profusion Realty

  • Montreal: 5-bedroom townhouse

    strong$985,000:/strong The realtor humbly describes this property as a “cottage in Westmount,” but with five bedrooms, four baths and parking for two, this “cottage” is pretty out-sized.

    Source: Profusion Realty

  • Montreal: 5-bedroom townhouse

    strong$985,000:/strong The realtor humbly describes this property as a “cottage in Westmount,” but with five bedrooms, four baths and parking for two, this “cottage” is pretty out-sized.

    Source: Profusion Realty

  • Toronto: 4-bedroom bungalow

    strong$989,000:/strong Located in an area with lots of surrounding commercial properties, the seller notes that the zoning could easily be changed to allow for a business. But you can always just live in this property, if paying $1 million for a bungalow strikes you as reasonable.

    Source: Realty Way Corporation

  • Saskatoon: 3-bedroom house

    strong$970,000:/strong Don’t let your eyes deceive you: This isn’t a historic property. Rather, this duplex is a recreation of the Todd House, a 19th-century home located in Toronto. It’s so modern it even features an indoor garage.

    Source: Hallmark Realty

  • Saskatoon: 3-bedroom house

    strong$970,000:/strong Don’t let your eyes deceive you: This isn’t a historic property. Rather, this duplex is a recreation of the Todd House, a 19th-century home located in Toronto. It’s so modern it even features an indoor garage.

    Source: Hallmark Realty

  • Saskatoon: 3-bedroom house

    strong$970,000:/strong Don’t let your eyes deceive you: This isn’t a historic property. Rather, this duplex is a recreation of the Todd House, a 19th-century home located in Toronto. It’s so modern it even features an indoor garage.

    Source: Hallmark Realty

  • Port Medway, N.S.: 3-bedroom seaside estate

    strong$990,000:/strong Originally meant to be occupied by the architect who designed this property, this property on Nova Scotia’s South Shore is “designed to be self-sustaining,” the realtor says, and was built partly using reclaimed and re-purposed materials.

    Source: Tradewinds Realty

  • Port Medway, N.S.: 3-bedroom seaside estate

    strong$990,000:/strong Originally meant to be occupied by the architect who designed this property, this property on Nova Scotia’s South Shore is “designed to be self-sustaining,” the realtor says, and was built partly using reclaimed and re-purposed materials.

    Source: Tradewinds Realty

  • Port Medway, N.S.: 3-bedroom seaside estate

    strong$990,000:/strong Originally meant to be occupied by the architect who designed this property, this property on Nova Scotia’s South Shore is “designed to be self-sustaining,” the realtor says, and was built partly using reclaimed and re-purposed materials.

    Source: Tradewinds Realty

  • An actual house in Vancouver!

    It may be a shock to some, but yes, it is possible to buy an actual house — not a condo — for under a million in Vancouver. Here’s proof: A two-bedroom property in the city’s desirable Kitsilano neighbourhood, for a mere strong$998,800!/strong

    Source: Sutton Group – West Coast

  • An actual house in Vancouver!

    It may be a shock to some, but yes, it is possible to buy an actual house — not a condo — for under a million in Vancouver. Here’s proof: A two-bedroom property in the city’s desirable Kitsilano neighbourhood, for a mere strong$998,800!/strong

    Source: Sutton Group – West Coast

  • An actual house in Vancouver!

    It may be a shock to some, but yes, it is possible to buy an actual house — not a condo — for under a million in Vancouver. Here’s proof: A two-bedroom property in the city’s desirable Kitsilano neighbourhood, for a mere strong$998,800!/strong

    Source: Sutton Group – West Coast

Article source: http://www.huffingtonpost.ca/2014/04/18/house-prices-toronto_n_5174437.html

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Canadian home sales in March up from year ago

TORONTO – The Canadian Real Estate Association says the number of homes sold last month was up 4.9 per cent compared with the same month last year, but remained below the 10-year average.

The industry association also says sales in March were up 1.0 per cent compared with February, but below a recent peak set last August.

CREA says more than half the local markets it tracks saw more sales in March, led by Vancouver, Calgary and Toronto but the number of new listings rose only half a percentage point and the supply of homes for sale remains low.

CREA chief economist Gregory Klump says March was an improvement over the previous two months but “there was little evidence of a flood of pent-up demand being released.â€?

Klump also said that some markets, such as Toronto and Calgary, are seeing multiple offers per listing.

“This means national sales are being constrained by a lack of supply despite strong demand in some markets, since Greater Toronto and Calgary combined account for a one-quarter of national activity,” Klump said.

Nationally, there were 6.3 months of unsold listings at the end of March — down from 6.4 months at the end of March and 6.5 months at the end of January.

The national average price for homes sold in March through CREA members was $401,419, up six per cent from the same month last year.

The association’s MLS home price index — which adjusts to compensate for the mix of properties sold — also rose 5.19 per cent year-over-year, up slightly from 5.05 per cent in February.

In Toronto, the country’s largest city, economists and public officials have kept a wary eye on the condo segment of the market. There have been fears, so far unrealized, that a years-long building boom and high-prices may result in a lower prices if new supply outstrips demand for condominium units.

However, the Toronto Real Estate Board — a member of CREA — announced separately Tuesday that 4,454 condominium apartments were sold through its system in the first quarter, up nine per cent from 4,085 a year earlier, while the average selling price also rose, gaining 5.6 per cent to $351,213.

Jason Mercer, TREB’s senior manager of market analysis, said that the number of condo apartment completions was up substantially in the first three months of 2014 and that could result in more listings in the second half of the year as some investors choose to list their units for sale.

“If this occurs, buyers would benefit from more choice in the marketplace and thus could have more negotiating power with regard to price,” Mercer said in a statement.

In a separate report, however, the Re/Max real estate franchising group says demand for Toronto condos is being supported by a lack of available rental apartments — the vacancy rate is about two per cent — and the high price for detached homes.

Overall, Re/Max says it expects Toronto housing prices will will continue to rise about eight per cent this year — in line with the pace set in March.

It also says Vancouver’s prices are anticipated to rise by two per cent this year, a slower pace than in March when prices were up 5.4 per cent year-year. In Calgary, Re/Max says the average home price was $484,91 at the end of March, up five per cent from a year earlier. In Saskatoon, Re/Max estimates a six per cent increase for the rest of the year, up from the five per cent pace set in March.

Article source: http://www.baytoday.ca/content/news/national/details.asp?c=60802

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Welcome , today is Friday, April 18, 2014