Toronto Condo Commentary – 2nd Quarter 2010

Active Listings Growth for Condo Apartments Outpacing Listings for Low-Rise Home Types.

Following very tight market conditions in the first quarter of 2010, the resale
home market became better supplied between the beginning of April and the
end of June.

The number of active listings climbed strongly in the second
quarter compared to the same period last year.

Leading the growth in listings was the condominium apartment segment. In the central districts in
particular, active listings for condominium apartments grew by 79 per cent
year-over-year in the second quarter – a much stronger growth rate relative
to the 25 per cent increase for all other home types.

The active listings trend for condominium apartments follows the trends for
annual median price growth and new condominium apartment completions
in the GTA.

With the exception of a brief downward blip in the third quarter
of 2009, new condominium apartment completions have remained strong
over the past year.

This suggests that many new units, which are owned by
investors or buyers whose housing needs have changed since their preconstruction
purchase, continue to be listed in the GTA resale market.

This is especially the case within the City of Toronto where almost 80 per cent of
GTA condominium apartment construction is taking place.

Strong price growth has also attracted more listings into the market, as some owners
look to convert substantial “paper” returns into actual “dollar” returns. Of
course, with a surge in active listings over the past few months, buyers have
benefitted from more choice and the annual growth rate for the median price
has moderated to a certain degree.