Toronto real estate market has returned back to earth

The Toronto housing market, according to the Canadian Real Estate Association (CREA), has lost considerable momentum, but is probably just coming back to earth.

In the first half of 2008, existing home sales were 13.1 per cent lower than a year before. The number of homes available on the MLS (multiple listing system) rose 9.6 per cent. But CREA points out that the market was merely coming off record-high activity last year, and settling back to levels of still-vibrant activity seen in the preceding years. In hot areas such as North York and Armour Heights, homes are still being snatched up by savvy buyers wanting to buy a home in an amazing centrally located neighbourhood with wonderful resale potential. These areas are still in high demand and sell more quickly than comparable neighbourhoods.

The ratio of new homes available to sales shows that Canada's housing market is less of a sellers' market than since 2000. However, it is still not heavily in favour of buyers, say economists at National Bank Financial. That's the case in seven out of 10 provinces, they say.

HOWEVER, and this is a big however, prices are not falling; they're rising, although not as sharply as in the past. The average price of a house in Canada hit a record high in the first half of 2008, at $313,610 - up 3.6 per cent from a year earlier. Only Alberta saw price declines, down 0.1 per cent.

If you want to get into Toronto, North York, Armour Heights or other GTA areas, please call for more information: Liz Gordon, Sutton Group Admiral Realty Inc. (416) 739-7200, or email at egordon@trebnet.com.