Listings shortage pushing up prices
February 25, 2010
Tony Wong
BUSINESS REPORTER
The lack of residential Canadian real estate listings is most acute in Toronto, contributing to upward pressure on pricing, according to ReMax Ontario Atlantic Canada.
There were 41 per cent fewer homes listed for sale in the Greater Toronto Area in January compared with a year earlier, ReMax said in a report released Wednesday.
"The overall pressure on sales and price is significant across the board – and it's not likely to subside until more inventory comes on stream," ReMax said.
Nationally, 81 per cent of markets surveyed showed a sharp decline in listings according to ReMax.
After Toronto, Saskatoon was in second place with 37 per cent fewer listings, followed by Kitchener-Waterloo, down 33 per cent.
Victoria and Ottawa tied for fourth place, down 30 per cent, and Greater Vancouver, down 27 per cent, rounded out the top five tightest markets.
A lack of listings means that buyers have fewer choices, creating a sellers' market.
The lack of listings has spilled into new home sales, as buyers turn to new development to satisfy demand.
New home sales in the GTA more than doubled in January compared with the same month last year, according to figures released Wednesday by the Building, Industry and Land Development Association.
There were 2,162 mew houses and condominiums sold last month, representing a stunning 237 per cent increase over January 2009 and a solid start to the new year.
However, the comparisons can be misleading because last January represented the "height of the global economic crisis" when home sales were at the absolute bottom, according to the association.
Compared with 2008, sales were up by only 11 per cent.
"The market is reasonably healthy, but certainly not frothy," said BILD president Stephen Dupuis.
Within the GTA, York Region had the largest year-over-year gains, with 568 sales representing a 385 per cent increase, followed by the city of Toronto's 876 sales, up 289 per cent and Peel Region's 370 sales, up 259 per cent.
Toronto Star