No Major Correction in Canada's Real Estate Market: Richmond Hill Home Sales Up in May

Submitted by Jasmina on Mon, 2008-05-26 23:06.

Past weeks were unbelievably busy for me and I didn't have time to post some great news about Richmond Hill Real Estate Market and just released Scotiabank Real Estate Forecast for Canada:

(1) Real Estate Outlook: No Major Correction in Canada's Housing Market

The latest Real Estate Trends Report issued by The Bank of Nova Scotia explains why the market has a more stable base than it did prior to the crashes of the 70s and 80s. Adrienne Warren, senior economist at Scotiabank, said there are a variety of reasons for confidence in the continued health of the housing market:

  1. Unlike in the US, home prices in Canada are not substantially overvalued
  2. Speculative home buying is not widespread
  3. The real estate market is not overbuilt
  4. Households are not over-leveraged and
  5. Overall mortgage quality is still sound.

Still, the 10 per cent average annual increase in home prices over the past half decade was unsustainable, and a return to more historical norms is a welcome development, she said. "We predict a soft landing for the Canadian housing market, with somewhat lower sales and construction, and a period of relatively flat inflation-adjusted home prices... We expect overall sales volumes in 2008 to total about 15% below last year’s record levels, and home prices to increase on average by about 5%," Ms. Warren said.

The past decade has been one of the best on record for residential real estate in the Toronto area. Housing boom is ending, but there is no bubble to burst in The Greater Toronto Area real estate market.

(2) Toronto Real Estate Board: GTA Resale Housing Market Highlights

Greater Toronto Area neighbourhoods that experienced heightened activity during the first half of May are:

  • Richmond Hill South (N03) saw strong sales in most property types resulting in a 3% increase compared to a year ago.
  • In the Annex (C02) transactions rose 39% compared to the same period a year ago, driven by strong condominium apartment and detached home sales.
  • Interest in detached homes also led Streetsville (W20) to a 5% overall sales increase compared to a year ago.
  • The Danforth (E03) saw sales increase 29% overall compared to the same timeframe a year ago due to strong detached home sales.

Moderate sales and healthy price increases continued to characterize the GTA Resale Housing Market:

  1. In the City of Toronto, sales decline 15% from the first half of May 2007 and 11% from the same period in 2006. The average price in the 416 is $437,205, up 6% from $412,701 a year ago.
  2. In the 905 Region, there were 2,688 sales, down 9% from 2,950 a year ago but up 4% from the same period in 2006. At $377,688, the average price is up 7% from the $353,192 recorded during the same timeframe in May of 2007.

The GTA is showing signs for a healthy 2008 compared to the diminished activity during the first quarter of 2008. “Inventory is up 11% compared to a year ago, which has resulted in more choice for home buyers and will a positive effect on the quality of available listings,” said Toronto Real Estate Board President Maureen O’Neill. A wider selection from which to choose has also resulted in increased Days on Market, which has risen to 35 from last year's 28.

(3) Community Contribution: GTA Libraries Search Tools Updated

Another thing that happened this May, in the technology space, is that my Technical Support Team updated our community contribution for searching GTA Public Libraries from your iGoogle Home Pages and from Internet Explorer 7 and Mozilla Firefox search boxes directly, so that once again you can look up books at your local Toronto Public Library (TPL) without having to use the library’s search screen and while looking at other websites.

TPL has changed their Library Catalogue because the technology that the library was using to deliver its core cataloguing and circulation system services was dated and is being discontinued. Our other web browser search tools for Mississauga, Richmond Hill, Vaughan, Thornhill, Markham Public Libraries Search Box for IE7 and Firefox 2 were not affected by this Toronto Public Library change. If you are unclear how this can help you, please refer to the "Usage Tips" section in my older post Firefox Search Engine Plugins for York Region and Toronto Area Public Libraries.