Lower MLS Sales And Prices Forecast-CMHC

Home sales and prices across Canada are expected to fall during the second half of 2010, while housing starts will moderate, according to Canada Mortgage and Housing Corporation's (CMHC)second quarter Housing Market Outlook recent release.

The CHMC Housing Report found:

-Existing home market conditions will remain balanced over the next two years

-MLS(Multiple Listings Service) sales ease

-Inventory levels remain elevated

-Home sales for 2010 range of 450,000 to 485,700 with a forecast of 463,000

-Home sales for 2011 range of 425,000 to 490,700 with a forecast of 456,000

-Modest decline in home prices 2011

The average MLS price is expected to "edge lower" through the end of 2010 and then rise modestly in 2011.

New Housing starts are forecast to be 184,900 in 2010, and 176,900 in 2011.

The three main reasons given, for lower home sales and prices are the result of stricter mortgage rules, HST introduced in Ontario and British Columbia along with higher interest rates taking affect in the second half of 2010.


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Canadian Home Prices Still Rising

Canadian home prices are still rising as sales fall across the Country.

According to the Conference Board Of Canada home sales have fallen 25 per cent since reaching a peak at the beginning of 2010.

The costs associated with owning a home such as mortgage costs, insurance and new HST on some of the fees associated on buying or selling Real Estate are all making houses more expensive.

The recent Teranet-National Bank composite house price index recorded a 13.6 per cent home price increase from June, a year ago.

That June home price increase , month over month was the largest monthly increase since August of 2009 and the 14th straight monthly increase.

The reason for the home price increase is the two largest housing markets of Toronto and Vancouver saw buyers entering the market in advance of the HST that took affect July 1 in Ontario and British Columbia.

Many economists predict a slowing of price increases by the end of the year.

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Toronto New Condo Market Trending to Suburbs

New home sales for July were off by 42 per cent compared to July 2009.

Condominium suites accounted for 1,222 of the total new homes sales of 1.900 total units. Condos represented a 64 per cent increasing market share over low-rise sales.

According to Realnet Canada Inc., a Condo marketing firm, 46 per cent of high rise sales were recorded in the 905 regions like Markham and Mississauga.

Toronto saw 658 high rise Condo suites sold with another half of Condos sold split between Etobicoke, North York and Scarborough.

The average Toronto area Condo price was $430,782 for July, up 10 per cent over the same time last year.

More statistics to come..it all makes for a very interesting Toronto Condo Market, North America's biggest.

Pictured above is the new One Bedford Condominiums, one of the many new and resale Toronto Downtown Condos.

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Bisha Hotel And ResidencesBisha Condos Toronto

Bayside Toronto Waterfront Neighbourhood

A new proposed $800 million neighbourhood called Bayside is planned for the Eastern Toronto waterfront.

This new neighbourhood will feature 1700 residences, stores, restaurants, an entertainment corridor and office space all providing 2,400 jobs.

The Bayside project will have Cesar Pelli as the lead architect. He was the former dean of the Yale University School of Architecture and most notably the designer of the Petronas Twin Towers in Kuala Lumpur.

"The people who will eventually live, work and play here were our first and foremost design consideration," Pelli said.

The Bayside -development will extend east from Sherbourne to Parliament Streets between Queens Quay and the Lake Ontario.

The first Bayside Condos will not be ready until 2014 at the earliest and full completion of this mixed-use complex 10 acre site by 2021.

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Toronto Summer Condo Market

Toronto Summer Condo Market Doubts

There is an ongoing debate now on, how the Toronto Condo Market will end this year and perhaps into 2011.

The first half of 2010 recorded record sales of many, many, new Toronto Condos, so much that Canada's largest city saw developers complete 16,000 units in 2009, twice as many as New York City and three times as the Vancouver Condo Market.

During the second quarter, buyers had a record 10,997 Condominium units to choose from. Another 34,089 units are under construction. Eighty-eight per cent of those Condos have already been sold, but another 5,000 units are expected to begin construction in the next three months.

An estimated 40 per cent of Toronto Condos are owned by investors – I think the percentage is much higher depending where the Condo is located.

Toronto Condo developers are required to presell at least 70 per cent of their Condos before the banks hand over money to build.

In the second quarter, the average selling price in Toronto gained 1 per cent to $331,000. And despite slowing sales, developers are asking more for less.

The average asking price for the 23 projects launched in the last three months was $565 a square foot, a 12-per-cent increase from the same time last year.

The Toronto Condo Market has been most resilient in the past several months and I believe, in 2011, sales and prices will continue to post positive returns.

Pictured above is the new Bisha Hotel And Condos, one of the many new Condo Projects in the Financial and Entertainment District of Toronto.

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Nicholas Residences Condominiums Yonge,Bloor

A new Condominium, Nicholas Residences in the Bloor and Yonge Street area was refused to add six more storeys to its Condo Tower project.

The property was advised by the committee of adjustment the Condo Tower must remain as a 29-storey Condominium building.

Potentially several buyers of the additional floors could be left with a problem if the application fails in the appeal of the height restriction.

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Toronto Financial District Real Estate Redevelopment

A large scale mixed-use Commercial Real Estate project is planned for Toronto's Financial District.

A British Columbia management company that manages pension funds announced this large scale project that will include 18 York, Bremner Tower and a new Delta Hotel.

• 18 York, a 26 storey 670,000 square foot tower
  
• Bremner tower, a 30 storey, 700000 square foot tower
  
• Delta Hotel, a 45 storey four star hotel with 568 guest suites.
  

The two office towers and hotel will comprise the Southcore Financial Centre and the project will have an enclosed pedestrian link to Union Station, the Toronto Path Network and the Metropolitan Centre.

The office building just showing on the right side, is the new Telus Tower at 25 York Street, another new office Tower adding to the Toronto Financial Centre.

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Toronto Real Estate July Sales Lower

Toronto Real Estate July Sales

Toronto Real Estate agents reported 6,564 sales in July, a 34 per cent decrease from the record sales of 9,967 reported in July 2009.

July sales slipped below the expected long-term trend, however total Real Estate sales were up 12 per cent compared to the same period last year.

The average resale home price was $420,482 for the Greater Toronto Area, an increase of 6 per cent over July 2009.

The average resale price over the first seven months was up 12 per cent annually to $432,253.

There were 1,551 Condominiums sold in the GTA for an average price of $279,900.

Related:

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New Toronto Condominium Sales Slowing

There were 4,991 new Toronto Condo sales in the second quarter, a drop of 8 per cent from the 5,415 Condo sales in the first quarter.

Urbanation, a Condo market research company forecast "a slightly slower pace for the remaining two quarters of 2010."

A total of 19,000 Condo suites are expected to be completed this year. Currently there are 272 Condominium projects looking for buyers in the Toronto Real Estate market.

The price of new Toronto Condominiums averaged $529 per square foot, in the second quarter, an increase of 12 per cent from the same time last year.

In the 416 Toronto area, the average Condominium price was $639 per square foot.

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