Wednesday, June 05, 2013

Mixed signals from Toronto’s real estate market

During May 2013 more than 10,000 properties were sold across the GTA in a real estate market which is down nearly 3.5 per cent from May of 2012.

Sales of single detached homes are up almost 1% and prices in that segment included a 3% year-over-year increase. Toronto Real Estate Board President Ann Hannah describes the market as showing improvement over the past two months.

Ann Hannah believes potential home buyers who had delayed their decisions because of mortgage rule changes by the federal government are now becoming active in the market again.

The average sale price for real-estate across the city in May 2013 was $542,000, up by 5.4% in a year.

However condo sales were extremely weak, down over 9% compared to May 2012, but prices rose slightly.

I believe homebuyers are becoming extremely wary of buying a condo because of fear of when the Toronto Condo Bubble might collapse.

I am predicting condo prices in 2015 - 2016 to drop between 30 to 40% as tens of thousands of new condos come on to the market and flood the market with too much extra supply.

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