For immediate release
Home sales in ‘up and coming’ areas lead the GTA
in terms of percentage increase so far this year, says RE/MAX
Mississauga, ON (September 13, 2006) -- Higher housing values and tight inventory levels in traditional blue chip neighbourhoods have driven up year-to-date sales activity in the GTA’s ‘up and coming’ communities, according to RE/MAX.
Urban areas that have seen a substantial upswing in the number of homes sold include Toronto Real Estate Board district C06 -- Bathurst Manor, Armour Heights -- where sales have climbed 33 per cent over levels reported during January – August 2005. A 22 per cent increase in sales has placed W02 -- the Junction, Bloor West Village, and High Park -- a strong second. C01 -- the Harbourfront, South Annex, Little Italy, and Kensington Market -- experienced a solid 16 per cent increase year over year, while C07 -- Lansing, Newtonbrook -- reported a 15 per cent uptick in unit sales. Scarborough’s E06 and E04 rounded out the top five markets, with sales 14 per cent ahead of 2005 levels.
“Affordability continues to be a key factor in today’s marketplace,” says Michael Polzer, Executive Vice President, RE/MAX Ontario-Atlantic Canada. “Many young purchasers are looking for economically viable alternatives in this increasingly expensive, world class city. Rather than take on additional debt, these buyers are turning to ‘fringe’ properties and revitalized areas, or they are shifting their expectations to smaller condominium units in the busy downtown core. The trend is significant, with sales in the GTA running just slightly ahead of last year, there’s no question that these ‘up and coming’ neighbourhoods are clearly outperforming other areas of the market.”
Bathurst Manor, for example, is situated just north of the 401 in the central core. Two hundred and twenty six homes changed hands so far this year, well ahead of the 170 reported one year ago. Lot sizes are generous and prices start as low as $160,000 for a condominium and $350,000 for a freehold single-family.
“Young people traditionally drawn to the more popular areas just south of the 401 are looking at properties north of the 401 where the savings can be as much as $200,000 on a similar product,” says Polzler. “The same holds true in areas such as Scarborough, especially the lower half of E06 bordering on the coveted Beach area. Prices in E06 start at $300,000 compared to the Beach, where single-detached homes command $500,000 plus.”
Bloor West Village and High Park – areas that have truly achieved blue chip status – also draw top dollar, with homes starting at about $400,000 for row housing. Between January and August, just over 600 homes were sold in W02, representing an increase of more than 100 sales year over year. Unlike years past, a growing number of sales are now occurring in the Junction area, where purchasers can buy a home in need of renovations for about $275,000.
“In a housing market that has seen strong upward appreciation in recent years, these ‘up and coming’ areas are an oasis for buyers, particularly those who are entering the real estate market for the very first time,” says Polzler. “Supply of properties is ample, price remains reasonable, and purchasers can take their time in making their decisions. These are ideal conditions for the first-time buyer.”
The most statistically significant upswing in sales occurred in C01 – the Harbourfront, South Annex, Little Italy, and Kensington Market – where sales rose from 1,949 one year ago to 2,262 units so far this year. The area offers up the largest selection of condominium apartments and townhomes in the Greater Toronto Area, in addition to an assortment of single and semi detached homes. Many of the purchasers in this area are now coming from the 905 area code – a trend that is just starting to develop.
“Frustrated with the travel time into the city, these buyers are committing to properties that are in close proximity to both work and play,” says Polzler.
Movement is also occurring out of the city, with several suburban communities enjoying substantial upward momentum in terms of unit sales activity. Most notable is N12 -- Markham-Stouffville -- an area that has seen an increase of 33 per cent to 175 sales year to date. Sales in neighbouring Richmond Hill have also experienced an 18 per cent increase, rising to 514 units so far this year, up from 437 one year ago. Just east of the city, E12 and 13 -- Pickering, Ajax -- have seen double digit gains in home sales in 2006.
“Once again, affordability is key,” says Polzler. “Getting the best bang for the buck is top of mind in today’s marketplace and will likely continue to be one of the most important considerations for years to come.”
RE/MAX is Canada’s leading real estate organization with over 16,060 sales associates situated throughout its more than 615 independently owned and operated offices across the country. The RE/MAX franchise network, now in its 33rd year of consecutive growth, is a global real estate system operating in over 64 countries. More than 6,375 independently owned offices engage 118,450 member sales associates who lead the industry in professional designations, experience and production while providing real estate services in residential, commercial, referral, relocation and asset management. For more information, visit: www.remax.ca
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For more information:
Christine Martysiewicz
RE/MAX Ontario-Atlantic Canada
905.542.2400
Eva Blay/Kim Hennick
Point Blank Communications
416.781.3911
Remax, leading the way with fast, professional sales of Mississauga Real Estate. Contact Damir Strk to find a home or sell your current Mississauga real estate property. |
