Toronto home prices rise 9% in 2007
- 9.01.2008
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Toronto real estate prices rose 9% last year, continuing a decade-long rise amid fresh concerns the market might cool in 2008.
“I think we had a phenomenal year and it will be difficult to duplicate,” said Jane Renwick, executive vice-president of Urbanation, which issues a quarterly research report on Toronto’s condo market.
The average sale price of a Toronto home was $376,236 in 2007, the Toronto Real Estate Board announced yesterday. That’s 9% higher than the 2006 average of $351,941.
It continues an upward trend that began in 1997, when the average GTA home sold for $211,307. The number of sales set records throughout 2007, and the market grew hotter after the city adopted a new real estate transfer tax, which takes effect on February, 1.
That tax, as well as signs of economic slowdown in the U.S. that could influence the Canadian economy, may have an effect on Toronto house prices.
“It’s difficult to say what will happen, what we can expect in 2008,” said Von Palmer, a real estate board spokesman. “In this case, in Toronto with the tax, how will it impact sales? Hopefully, not in a negative way. Toronto does have the tax, the 905 doesn’t. People who are looking to avoid it will pay it in Toronto or look to the 905.”
Real estate transactions were up 12% in December, 2007, over the previous December, fuelled in part by condo sales. Usually about 20% of total re-sale figures, condos were more than a quarter of the market.
“I think the sales of condos definitely increased because of the land transfer tax,” said Maureen O’Neill, the real estate board’s president.
The hottest areas for re-sale in December were Riverdale, which saw a 75% increase in transactions compared to the previous December; Mimico, up 57%; and North York, up 44%.
See Toronto Real Estate Board report »
