Housing Starts in Toronto Continue To Rise

Toronto continues to progress further and further away from the dark period that characterized the troubled real estate market of late-2008 and early-2009. These days, things are looking up. People are buying homes, more homes are being sold and housing starts continue to rise as buyers and sellers become more and more confident in the market.

Case in point, Toronto housing starts have risen for the third month in a row. October alone saw a 13 percent increase over September, which translated to a total of 34,200 units.

 The most common type of housing start in Toronto for the past three months has been single-detached homes. However, condos are beginning to make their way up in starts as well. Many buyers prefer condos because they can get a home for much cheaper than if they were to buy a single-detached.

 This is good news for buyers because the more housing starts there are; the more prices will go down. Right now there are more sellers than buyers, and that means prices are rising, but with more housing starts everything should stabilize.

 Even with the large gains from October to November, total housing starts are still below the level that they were in 2008 during the same period. Even across Ontario, housing starts have reached their highest levels since March, with 55,700 units and a 15 percent total gain from September, but this is below 20 percent below that same time period in 2008.

 As time goes on, more and more buyers, sellers and builders will become more comfortable with the real estate market. Things are still dicey in the United States, and that is making some of the people in the real estate market nervous here. While everything is rising, they could still fall depending on how the economy does in 2010. That being said, most Canadian speculators on the future market feel that housing starts will continue to rise, eventually reaching the levels they hit in 2010.

 Many buyers have been waiting for housing starts to increase because they want to buy a new home, not a home that has been lived in before. With a new home, there is much less problems. Inspectors can be hired but they are generally much cheaper when the home is new. As more homes are built, more buyers will enter the market and the economy will continue to recover.