Year End Note on Housing Market/Prices in and around Toronto

The year began with emergency rate interest rates. The year will end at low levels.
After a bounce back of approx 20 percent from Jan 09-2010 Jan...the remainder of the year was a bit of a bumpy ride. We grew and peaked in April in many areas and sputtered in most areas into the summer months.

We didn't put as many of our homes on the market after the summer and saw a decent fall but really a Seller's market with lowered inventory and hence heightened prices.

Midway thru the year the government worried some that we were creating a bubble in the housing market with these extraordinary low rates and consumer debt was reaching all time highs. So...the government in a round about way tried to put the brakes on the level of purchasing by making the qualifications for first time buyers more difficult and taking away tax advantages for renos. Most banks shortened their ammortizations and first time buyers needed to qualify based on the 5 yr posted rate.
Did this take any steam out of the market?

Overall...not really. Canadians had seen enough of the foreclosure woes in the U.S. that banks and buyers wanted for the most part to afford their mortgages.

We saw a boom in condo purchases especially outside the city in areas like Mississauga and Richmond Hill. Areas that no doubt are more enticing with one land transfer tax as oppose to Toronto's 2.

So heres the picture moving into 2011:

1. Rates are low. Bank of Canada did not raise last week
2. Supply is lowered. Bodes well for Seller's but Buyer's may argue they feel good as rates are low
3. People will continue to need homes
4. On a world scale, Toronto is not terribly expensive and we continue to have demand from immmigrant populations looking to begin their lives here
5. Now the Bank is actually saying that consumers in Canada are being more dilligent and cleaning up their balance sheets

But...anything can happen. Just ask Bernake!
We'll no doubt take our cues from the U.S. as they stage their recovery
There's been some healthy data but unemployment numbers are awful

In areas I frequent here are some year end examples of pricing:

Aveneue and Lawrence:
we saw 3 homes on the same street east of aveneue all sell well into 800ks-mid 900ks. All 3 bdrm homes, on 25 ft lots with mutual driveways and some front pad parks. The homes did show well overall.

Upper Forest Hill Village:

50 ft lots with tired homes but good layouts for renovators were hitting 1.2 approx---depending on street, location on street, timing, exposure, number of bedrooms, etc.

Thornhill Woods:

Homes on 40 ft lots typically by 80-90 with 4 bdrm 4 washrooms were all over the map. 600k-870k. Depending on builder, upgrades, when built, finished basement

Semis/Thomes-
450k-575k

Armour Heights:

We saw 2 storey 3 bdrm 2 bath on periphery streets (just outside of main area nearing bathurst) approach 700k

Of course the core streets saw homes sail into mid 1 millions and certainly higher on ravine lots.

With that....if you have any specific questions---don't hesitate to ask.
Wishing you a happy and healthy New Year!

Please call or email if I can be of any assistance to you or your family.

Michael Gruenstein MBA CSC
http://www.TheSmithsBuyAHouse.com
http://www.PropertiesintheGTA.ca
mgruenstein@trebnet.com