On the first edition of a new series called Neighborhood Watch, we'll take a look at those skyscrapers in the sky in North York in the Yonge Street corridor. The major condominium boom is centered in the North York city center, starting from north side of Finch Ave., all the way down south to Avondale Ave. and far east and wide of Doris Ave. and Beecroft Ave. respectively and is within the C7 and C14 municipalities of Toronto. Overall market conditions in the Toronto & GTA have slowed in the month of October from the beginning of the year, however prices still have risen throughout Toronto & GTA. However if we look closer at the North York condo corridor area, the average prices in the 1 bedroom to 3 bedroom suite types have actually decreased.
|October 2011 vs 2012 North York - Condo - Avg Price by BR Yonge St. Corridor|
|Year||1 BR||1 BR + D||2 BR||2 BR + D||3 BR|
|% Inc / Dec||-0.86%||-2.14%||-0.25%||-3.05%||-3.56%|
The number of sale transactions has decreased 27.9%, year over year as well. With 124 sales in October 2012, 1, 2 and 2 bedroom + den were the most popular units sold, while in 2011, 2 bedroom units led in sales. On average, the 2 bedroom condominium units takes the longest to sell in the month of October, taking approximately 12 more days than in 2011.
Taking a deeper look into the sales trend for the North York Yonge St. Condo Corridor area, we can see that a 2012 month over month comparison of the average price a 1 bedroom with 500-599 and 600-699 square foot sold at. 1 bedroom 600-699 square feet condominium rose to it's highest price peak in April, which is the start of the real estate buying season, where demand to buy and sell housing started to rise. However it starts to decrease in the subsequent months as buyers waited to see the market attitude to the news of a price correction.
A key note here is that the price did not see the greatest decrease due to the "wait and see" attitude, rather, it was the new lending mortgage rules that took effect in July by the Federal Government. The new lending mortgage rules made it effectively harder for buyers to obtain mortgages. With less people able to afford mortgages, the amount of offers decreased, on top of the summer time effect (where sales are usually slower) and days the property remained on the market increased, resulting in a drop on the average price in July and August.
In the latter half of the year, starting in September, the average price of 1 bedrooms that are 600-699 square feet are on the rise and by the end October, has returned to the average price levels from beginning of the year. Lots of questions in 2012: will the market correct itself? will the federal mortgage rule change? Definitely a roller coaster ride in 2012. My observation is that by looking at the average price of condominium units, it doesn't look like the market is hitting that correction.
For further information about buying and selling Condominium units in the North York Yonge Street Corridor, please contact Nicholas Chan. Whether you're buying, selling, leasing or assigning your home or property. For an initial consultation, questions or to chat over coffee, please call or email Nicholas Chan or fill in the the form below!