Existing home sales for the first half of February were down by 13 per cent
Larilyn Bennett is looking for a condo in the competitive Toronto market. But she's in no hurry.
"I'm going to take my time. I think there is a lot of choice out there," says Bennett, 32.
When she purchased her first condo, a 634 square foot unit near St. Lawrence Market, Bennett said she felt rushed. The unit went into multiple offers. She initially was left with buyer's remorse thinking she had paid too much. But the passage of time proved that it was a good investment.
This time around there are fewer multiple offers on the market, and Bennett is looking for a larger unit to hold her expanding wardrobe and camping gear.
"I think now is a good time to move up, and I really need the extra space," says Bennett, who works as a stylist on film and television production.
According to the Toronto Real Estate Board in figures released Thursday, there were 3,084 sales during the first two weeks of February, representing a 13 per cent decrease from the same time a year earlier.
"We are on pace for a strong sales result in February, but transactions will come in lower than the record result reported last year," said TREB president Bill Johnston.
The average selling price of a home was up five per cent in February compared with the same time last year.
In the city of Toronto, prices were an average of $499,861. In the 905 region prices were $416,260.
But prices are not expected to go up significantly this year. Which is something that Bennett is banking on, since she has already sold her current property and is living with her boyfriend.
According to the Canada Mortgage and Housing Corporation in a forecast released Thursday, Ontario home prices will grow closer to inflation this year and next with markets remaining balanced.
Housing activity has “stabilized” in recent months and demand will show a modest recovery through the latter part of 2011 and into 2012, according to the federal housing agency.
“Momentum in housing activity should slow in the next year from the volatile pace in recent years as moderate economic growth, fewer first time buyers and rising mortgage carrying costs temper increases in sales and prices,” said Ted Tsiakopoulos, CMHC’s Ontario Regional Economist.
While Ontario's economy was estimated to increase by 3 per cent in 2010, slowing global demand, moderating housing activity and a high dollar will dampen momentum, says the CMHC.
"Consumers will contribute less to the economic recovery moving forward thanks to less pent up demand and slower employment growth," said Tsiakopoulos.
Nationally, prices are also expected to grow at about the pace of inflation. The forecast is in line with the Canadian Real Estate Association which said last week that it expects prices to rise by 1.3 per cent this year.
Ontario home starts will weaken from 2010 levels according to the CMHC, reaching 56,200 units in 2011 and trending up to 59,500 units in 2012.
“Housing starts will remain in line with long term demographic fundamentals,” said Bob Dugan, Chief Economist for CMHC.
In Ontario, sales are expected to range between 165,00 and 217,000 transactions in 2011 and into 2012.
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