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Toronto Real Estate

Sales pace cools, but prices still rising

As predicted in previous industry forecasts, the sizzling sales pace of Canada’s housing market has begun to cool and move at a more moderate pace.  However, according to recent statistics released by the Canadian Real Estate Association (CREA), prices are continuing their upward climb.  As expected, there was a decline in the number of transactions in most markets across the country in June, due in part to a modest rise in interest rates, and the coming HST in Ontario and BC.  Although sales declines were greatest in Toronto and Calgary, it should be remembered that these declines are being compared against record or near record performances in these markets.

 

Although the pace of sales has cooled, the supply of homes for sale remains tight.  According to CREA, the total inventory of listings now represents 5.7 months on the market.  New listings are in decline, which is keeping the market balanced.  The only thing still on the upswing is the average price for homes listed on the MLS, which is now approaching $343,000 nationally.  As the market continues to moderate, buyers are expected to take their time reviewing properties and weighing their options.  CREA forecasts that this trend will take some of the upward pressure off prices moving forward.  While the days of double-digit price increases may be winding down, real estate remains a solid investment, with carrying costs still at very affordable levels due to relatively low interest rates.

 

Moving forward, CREA predicts that as the Canadian market continues to moderate, a recovering economy and job market will provide support for housing activity and prices.  Of course, this is just a national overview.  Market conditions can vary dramatically between communities, and sometimes even on the same stree

Published Monday, August 09, 2010 1:32 PM by Jordan Epstein

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