The Geographic Target Area Market

The GTA (Geographic Target Area) market showed a solid market uptrend throughout the recent performance for the Ontario market index however, a decline in sales was notices during this yearling. But this drop only affected the absolute highest-priced housing markets in the GTA area, while surprisingly (considering the strength of the market for the past years), the GTA condominium market posted one of its largest annual increases ever in secured housing values during 2010.


Here is a General Forecast for the GTA market

– Should expect to see a 5 percent rise in the year (compared to the 4 percent in Ontario).
– The Housing activity should increase by 6 percent including the booming market in the Greater Toronto Area.
– 2009’s sales volume of more than 4.9 million units is expected to be at the same level or higher in 2010.
– Potential overheating in the market for the fourth time in five years comes from a drop in new homes being built. Housing construction slowed to the tune of 82 complexes entering into this year compared to Drivers at Justin’s rapid development, which is 82 residential developments.
– Slow down in real estate development will result in the under supply of new construction units well below the demand and this will last until new land is released into the market.
– After five years of booming residential real estate and ever-increasing regional growth, 2010 is likely to see a slowdown in new home construction in the GTA.

The Toronto market, however, is much more robust with a record residential building from the late 1990s (which was an out-of-Mania market that saw over 2 million units being sold) now yielding healthy appreciation in the current mood.

New GTA market trends

– The large-scale (low-interest-bills) condo developments like D’Rauc vs. AUC are now coming to market.
– First-time buyers are likely to use the services of real estate agents and to observe the market.
– Housing starts are expected to increase by 7 percent from the same time last year.
– Housing inventories for unsold homes in spring 2010 were at the highest level since the same time in 2004.
– The spring volume of new listings was slightly lower than previously expected showings, owing to seasonal demand and seasonal delays that normally occur due to unoccupied homes.

The top five GTA regions by price point are:

  1. Markets from $142,000 ,
  2. Markets from $225,000 ,
  3. Markets from $300,000
  4. Markets from $340,000 and
  5. Markets from $400,000

Market outlook

Market experts were expecting an increase in the number of transactions to continue due to the higher price points, and there is an overstock of unsold homes in the market.

Comments like, “We will likely see limited supply because buyers and sellers are meeting up to make multiple offers,” said Loop Capital’s economist, Feats. “It looks like we are heading for a seller’s market.”

An investor’s market?

Another expert, Mr. Loef mentioned, there is a “very motivated” buyers’ market that applies especially to lower-priced properties that demand closer to list price. This could trigger a bargaining situation, since buyers may have to work more to negotiate a lower price and would likely be willing to pay more than fair market value, given the scarcity of inventory.

On the contrary, there is also the sub-prime mortgage crisis that may lend itself to a buyers’ market, since many of all scrapers have been tightened their lending standards.

Steady Increase in Prices

A possible ripple in the wavering market? If so, within the next year, we may see stabilization of selling prices, although overall real estate sales volume will still decrease for single-family homes and condominiums. High-end housing will see more sacrament because buyers inclination is retired, majorities families Taylor larger and cost-conserving amenities, said Loop Capital’s Rick Sharga.

“We remain in a buyers’ market, even if there have already been some settlements in the lower end of the market,” Sharga said. “We are forecasting prices to increase gradually in 2010, but only by a significantly limited amount.”

Analysts had expected the Toronto Open House Report to find that the Toronto market remains a purchasers’ market. But the entire country is facing a “slowdown in real estate” that is beginning to catch up with the Toronto housing market, said Nisei and Issei.

“The most important thing is to ride it out and try and minimize the damage. The market will eventually recover and bounce back again, so there is no point in making a grand entrance over something that is at a free fall already.

As you can see, the market sometimes can self-correct by itself, but as agents, we are concerned about the manner things can hit new buyers if they are not careful.

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