New Home Sales Hit Two-Year High In Toronto

Toronto continues to see surging sales in the last quarter of 2010, with new home sales in the Toronto area hitting their highest level in more than two years. In October, new home sales reached 4,150, which was the highest level seen since July of 2007. October’s new home sales were an impressive 173 percent above what they were just one year ago.

Residential homes are not the only real estate sector that is growing. Condo sales in Toronto also rose by 77 percent.

 The main reason for these high sales is the fact that interest rates are at record lows right now, and builders are currently building homes frantically to take advantage of the newly surging market. Interestingly, low-rise new homes began to pick up as early as the spring of 2009, but high-rise condo sales only began to rise in the fall, around October.

 Currently, sales on new homes are at about 2.5 percent above what they were last year. As well, the cost of new homes has risen as well, making home costs higher than any investor would have thought in the early part of 2009. Condo sales in particular have been going crazy, and prices continue to rise as the number of available new condos dries up, but the number of buyers continues to increase.

In fact, any condo or home under the cost of $400,000 will get multiple offers. Homes over $400,000 still get a lot of interest, but not as much as those homes that are slightly cheaper.

 Many sellers are now offering incentives on higher priced condos and homes to generate even more interest. These include cash-back on closing and money put towards upgrades including new floors, paint and more.

 With the number of new homes dwindling and the number of buyers increasing, it will continue to remain a sellers market. Real estate agents see this and are making sure they have a good stock of properties to sell. Many agents are now lining up to buy units in new condo buildings, so they can then sell those units at a much higher price.

 If you are in the market for a new home or a new condo, it would be best to wait just a couple of months. By that point, new homes and condos will be ready to sell again and you can take advantage of lower prices, while still getting low interest rates, which are not expected to increase until mid-2010.