According to a report,
the Greater Toronto Area has reported good condominium sales last month, at
almost the same record levels as recorded in 2009. October sales stood at
4,535, a 0.6% jump from last year’s figures for the same month. This is a
strong recovery from the poor sales in September, which saw a 32% fall.
High-rise sales have seen a major spike, with 70% of the
homes sold in this month being condos. Low-rise sales, on the other hand, fell
by 32%. A majority of the condominium sales were seen in Toronto, which
contributed 76% to the total sales figure, with York Region and Mississauga
reporting the biggest increases. BILD (Building, Industry and Land Development
Association) said that the rapid pace of high-rise constructions, a growing
trend in the suburbs, will continue on. The stable Toronto housing market also continues
to attract investors.An important reason for the spike in condo sales is due to
the fact that they are more affordable in comparison to low-rise houses, whose
high prices have discouraged buyers from approaching mortgage lenders
and real estate agents. Builders will most likely continue building smaller
residential units that investors and buyers can afford.
Sales of new homes so far are 15.5% ahead as compared to
last year. But this strong performance is not expected to persist. Canada
Mortgage and Housing Corporation forecasts a weak 2011, especially considering
the already weakening resale market. A weak market will also mean that builders
will have to keep home prices affordable.
