TREB issued a mid May report
On May 17, Toronto Real Estate Board (TREB) issued a preliminary report for resale housing activities. In first half of May 4,522 of homes were sold compared to 4,367 of May 2005. The prices raised by one percent from this April, and by six percent from May 2005 to $369,543. The most active areas were:
- Detached homes in waterfront area of Scarborough increase of 61% in the amount of transactions from May 2005. (Victoria Park to Guildwood)
- In Downsview the amount of transactions for semi-detached homes rose by 51% from May 2005
- In Willowdale the amount of transactions for condominiums rose by 42%
According to Ted Tsiakopoulos, Ontario regional economist for the Canada Mortgage and Housing Corporation, condominiums represent a growing component of the housing landscape. “Rising home prices are encouraging a demand shift towards more modestly priced multi-family homes such as condominiums,” Mr. Tsiakopoulos said.
My commentary:
Again I am not as optimistic about market being strong as TREB is. The reason for that is even though the amount of transactions rose in first half of May by 300, it still doesn’t make up for the increased amount of houses on sale. This means that even though prices are rising we are still moving to seller’s market. I don’t think prices will drop anytime soon, but I think that the level of growth will be minimal and in some areas we might even see a drop in the prices.
I agree with Ted that condominiums are on a rise, due to rising housing prices. However, I still have to make up my mind how sustainable this growth is. The problem with condominiums is that you don’t own land which is the asset that appreciates in value. Logically when condominium becomes older the prices should go down, but as you can see market forces are strong enough to put the prices. I will analyze more, and publish a follow up post about how sustainable the growth is.
1 Comments:
Hello I want to congratulate to you. This site is fantastic, looks like entertained and very good to me it elaborated. I invite them to that they explore a little on my site of the Web
Our real estate listing includes great opportunities on Costa Rica Central Valley’s provinces such as San Jose, our Capital, with remarkable cities as Escazu at the west, or Curridabat at the east, experiencing a great development on both commercial and residential properties, making their real estate pricing highly attractive to investors; on other hand, Alajuela city gathers places with a very special warm weather such as Grecia, La Garita and Atenas, or beautiful farms for agricultural, cattle or nature preservation purposes as those located on San Carlos or Sarapiqui. We also offer land properties in Guanacaste, which is the province, along with Puntarenas, with the most beautiful tropical beaches on the Pacific Coast such as Tamarindo, Playa Grande, El Coco, Playa Hermosa, Nosara, Samara, Herradura, Jaco, Manuel Antonio, Dominical and Golfito, where the real estate business occupies the first place as the local economic activity.
Great investment opportunity at Costa Rica Pacific Coast, Preconstruction condos in costa rica
Condo sales in costa rica, Retirement property in costa rica. Visit us for more info at: http://www.costa-ricarealestate.com/
Post a Comment
<< Home