TORONTO – May 9, 2011: Urbanation Inc., the leading source of information and analysis on the Toronto condominium market since 1981, today released its Q1-2011 market overview.

The Toronto CMA new condominium market kicked off 2011with a bang, with 5,201 sales. That was just 214 sales shy of the record first quarter result from 2010. The resale market also showed a strong start in Q1, with 3,952 units sold, just 338 fewer than last year’s first quarter record of 4,290.

“These near record sales in the first quarter of 2011 mark a prelude to an even more vibrant second quarter,” says Ben Myers, Urbanation Executive Vice President and Editor.

The most noteworthy result in the market was the 7,550 construction starts in the first quarter, while there are now a record number of suites under construction in the Toronto CMA at 37,706. At the end of Q1-2011, over half of the 284 new condominium apartment projects and 73,643 units were under construction. Just 17 percent of the new condominium suites in the CMA were unsold (12,272 units) matching the record low set in the first quarters of 2010 and 1986.

“This momentum will continue into the second quarter, when an estimated 45 new condominium projects, representing 9,500 units, will launch,” says Myers. “That’s a healthy increase over the just 23 new condominium towers launched in the second quarter of 2010.”

Meanwhile, the 17 new projects that opened in Q1 sold 63 percent of their 3,768 total units. That number far surpasses the average absorption rate for new projects in their opening quarters between 2006 and 2010 (49 percent).

Prices also climbed. The average price per square foot of unsold product in the Toronto CMA new condominium market in the first quarter increased 3 percent from Q4-2010, and 7 percent annually, to $543 psf. Unsold index pricing was also up in the former City of Toronto to $650 psf and the Downtown Core to $739 psf.

Prices in the resale market also edged up by 2 percent over Q4-2010 to $382 psf, increasing the average resale index price in the Toronto CMA by the largest quarterly margin since the fourth quarter of 2009. Resale index pricing in the former City of Toronto was $509 psf with Downtown Core prices at $513 psf in Q1-2011.

Resale supply also declined, dropping far lower than the record 10,997 listings from one year ago to 7,490 resale listings in Q1-2011.

“The major infusion of new units in the second quarter of this year should moderate pricing increases, but Urbanation expects near record quarterly sales in Q2-2011” Myers added, “and an elevated level of project registrations, will also keep resale pricing increases temperate”.

ABOUT URBANATION

Urbanation is Canada’s leading condominium market research company. Since 1981, Urbanation has analyzed the Toronto condominium market, publishing the “industry bible” – Urbanation’s Condominium Market Survey. This quarterly report tracks new, resale and future condominium projects. Urbanation also provides the development community with essential consulting services, which include site and topic specific market studies and surveys.

www.urbanation.ca
www.twitter.com/urbanation

In March 2011 there were 9,254 sales for the month! Although this is approximately 10% fewer than March 2010, these are very strong numbers. The number of homes for sale is still very low. We have only 16,409 for sale right now.  What’s really interesting is that inventory increased by 29% between Feb/10 and March/10. This year that increase was dramatically lower at only 15%.  I’m pretty concerned about the continued lack of properties for sale.

What that means is that we will likely have a very tight Seller’s market this spring. The buyers out there don’t have a lot of choices. In the Toronto area as a whole, we only currently have approx 1 ½ month’s supply of homes for sale. It would only take only 45 days to clear out all of the existing inventory if no new listings were to become available. There are only a handful of markets in North America that even come close to what we are experiencing. To put things into perspective, Las Vegas has well over a year’s worth of inventory available. We are definitely still in what experts would consider a “Seller’s Market”.

A question I get asked is often, “What do you think will happen this year?” We are going into a federal election and unless something really goofy happens afterwards, we should still continue to have a very sound economy.   Mortgage interest rates are still very low and probably won’t rise dramatically for some time yet. SO we’re looking good for a while.

The key to taking advantage of current market conditions is working with the right realtor. When you hear of anyone who may want to buy or sell, please contact me at the office. I promise you that I will take care of them, do a great job and provide them with the best customer service. If you would like any more information, I’m here to help.

Yours Truly,

Doug Hannon

Thanks Doug for being such a wonderful resource!

Nobody, but nobody..sells MORE real estate than RE/MAX.

 Tighter inventory levels helped to make the last decade one of the healthiest periods on record for Canadian real estate, insulating markets in major centres from the peaks and valleys characteristic of past decades, according to a report released by RE/MAX.

 The RE/MAX Housing Barometer Report measured monthly sales-to-new listings ratios in 18 major centres across the country from January 2000 to December 2010.  The report found strong seller’s/balanced conditions prevailed for much of the timeframe, prompting significant gains in housing values.   The lone exception was when the market dipped into buyer’s territory during the latter half of 2008 and early 2009.  However, fewer listings served to offset diminished demand and provided greater stability. Average price increases from 2000 to 2010 ranged from an annually compounded rate of return of 4.82 per cent in London-St. Thomas to a high of 9.56 per cent in Regina. The national average was 6.82 per cent.  By far the tightest market in the nation was Winnipeg, where seller’s ruled the roost for 85 per cent of the decade, followed by Hamilton-Burlington (67 per cent), Regina (63.6 per cent), Kitchener-Waterloo (59.8 per cent) and Edmonton (57.5 per cent).

Housing markets have been remarkably hearty over the past decade and the stage is set for a better than expected 2011.  Inventory has proven to be an effective form of market self-regulation, providing both an ideal climate for price escalation and a shelter in periods of softer home-buying activity.As a number of city centres are already reporting stronger than usual activity out of the gate, it’s clear supply will continue to be the wild card in 2011.

 First-time buyers comprise the vast majority of purchasers, with move-up buyers in close pursuit.  Demand and supply are on relatively even keel at present in most areas, but the traditionally busy spring season is expected to keep the market at a perfect equilibrium in the days and months ahead.  However, there may be some exceptions to the rule.  The country’s largest markets—Greater Toronto, Greater Montreal, and Greater Vancouver—are expected to head into the second quarter with fewer listings overall.  Two centres—Newfoundland &Labrador and Kelowna—are still firmly entrenched in buyer’s markets.

 An improved global economic picture, lower unemployment rates and rising consumer confidence levels have buoyed home buying activity since November.  While sales figures are expected to be slightly off 2010’s heated pace, housing values are forecast to continue to climb in Canadian real estate markets in 2011—with most a direct result of lower listing levels.

 Western Canada experienced some of the highest rates of return for real estate over the 11-year period.  While values in Regina posted the greatest percentage increase (9.56 per cent), Edmonton, (9.25 per cent), Saskatoon (9.2 per cent), Winnipeg (9.01 per cent), Kelowna (8.42 per cent), Greater Vancouver (7.8 per cent), Calgary (7.7 per cent) and Victoria(7.59 per cent) all outperformed the national average.  

Equally strong gains were posted in Quebec.  While solid balanced market conditions prevailed for much of the decade, housing values in Quebec City and Montreal rose 9.2 and 8.48 per cent respectively on an annually compounded basis. 

 Increases were more moderate in Ontario and Atlantic Canada—with the exception of Newfoundland & Labrador, where values escalated 8.14 per cent on average.  Ottawa led in terms of price appreciation in Ontario at 6.78 per cent, followed by Hamilton-Burlington at six per cent, Kitchener-Waterloo at 5.69 per cent, the Greater Toronto Area at 5.35 per cent, and London-St. Thomas at 4.82 per cent. 

 There’s no question that price growth has been solid over the past decade, but history tells us that exceptional growth supported by sound fundamentals is healthy.  Concern is only raised when the underpinnings are insufficient to justify the trajectory.  By all accounts, Canada’s real estate market measures up to conventional wisdom and the faith in homeownership has not been misplaced.

 While the statistics are impressive, they alone cannot tell the tale.  The gains realized over the past decade speak to the tremendous resiliency of the Canadian residential housing market.  Considering catastrophic events, both natural and manmade, that occurred throughout the period—SARS, forest fires, ice storms, 9/11, a recession—the performance of the real estate sectorproved that much more significant.  It remained a consistent bright spot supporting economic growth and ancillary spending, and subsequently helped lead the nation out of the greatest downturn in recent memory—its hardy nature heightening its appeal as a long-term investment.

-more-

RE/MAX Housing Barometer…..3

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Hope you make it to Canada Ethan. And from the bottom of our hearts …Thanks.

Yours truly,

Michael Polzler
Executive Vice President, Regional Director
RE/MAX Ontario-Atlantic Canada Inc.

   Who doesn’t enjoy a test drive? There’s just something kinda cool about “different” and possibly better! I enjoy the car I’m driving right now. It is serving me well and hey I don’t have any complaints. Here comes the…but…There’s no mistake that the discovery of whats new and exciting creates a thought process for new possibilities. I picture myself behind the wheel of this new vehicle and an exciting new world opens up for me.

Let me draw an analogy for business. More specifically the real estate business. Most of us are generally content with the company that we’re re currently with. Not looking to make a move.  BUT. Do we really know whats under the hood at other companies? Could there be something exciting that could create new possibilities? Something to think about.
I’m extending a personal invitation you to “check under the hood”  of RE/MAX on Tuesday November 23rd as our guest. Discover what the brand offers and how it could make a dramatic and positive impact on your business. Hey you don’t have to buy the car. Just take it for a test drive!

Venue: Mississauga Convention Centre
75 Derry Road West, Mississauga, ON
Registration: 8:30am
Program Start: 9:30am (Includes Lunch)
C.E. Credit Courses: 1:00pm – 4:00pm (3 Credits)

Email REMAXinfo@Remax-Premier.ca to register