January 2010

[Ally]

Year will see listings rise, price growth moderate

I would like to take this opportunity to wish you all a Happy New Year.

We have just crossed the threshold into 2010 and it is important to look back on the events that impacted the GTA housing market in 2009 and also consider what the future holds.

In the latest month end report, the Toronto Real Estate Board, TREB, released MLS figures for December resale home transactions in the GTA. There were 5,541 total transactions, with an average price of $411,931.

The December results capped off what turned out to be a very impressive year. Sales increased 17 per cent annually to 87,308 – the second highest level of sales under the current TREB boundaries (the record of 93,193 was reached in 2007).

Average price for the year climbed to $395,460 – a 4 per cent increase over 2008.

However, simply looking at the numbers on their own, masks the interesting ride we took in 2009.

Read the full article here.

 

[Ally]

Ford posts first annual profit since 2005

Ford Motor Co. (F-N11.46-0.09-0.78%) made $2.7-billion in 2009, its first annual profit in four years.

The auto maker on Thursday also forecast a full-year profit in 2010. Earlier it had only promised to be "solidly profitable" in 2011.

Ford benefited from cost-cutting, a $696-million profit in its credit arm and popular cars and trucks like the Ford Fusion mid-size sedan and Ford Escape small sport utility vehicle. It gained market share in North and South America and Europe, despite the worst U.S. sales climate in 30 years.

"While we still face significant business environment challenges ahead, 2009 was a pivotal year for Ford," Ford chief executive officer Alan Mulally said in a statement.

Ford`s 2009 profit of 86 cents per share showed a significant improvement from the year before, when it lost a record $14.6-billion. Excluding one-time items of $711-million, Ford made 43 cents per share. Those items included severance payments and retiree health-care charges.

Read the full article here.

 

[Ally]

Heated housing activity throughout 2009 lends little air to bubble theory in the GTA, says RE/MAX
Mississauga, ON (January 28, 2010) – Despite limited inventory levels in the Greater Toronto Area (GTA) in the latter half of the year, double-digit price appreciation failed to materialize in the single-detached housing category in 2009, says RE/MAX Ontario-Atlantic Canada. In fact, an in-depth analysis by RE/MAX of 63 districts within the Toronto Real Estate Board found that detached housing values in 27 per cent of districts remained slightly off 2008 levels, while 57 per cent reported price appreciation of less than five per cent in 2009. Sixteen per cent of districts recorded an increase in average price in excess of five per cent. No double-digit gains were noted.

"There is simply no evidence of a housing bubble," says Michael Polzler, Executive Vice President, RE/MAX Ontario-Atlantic Canada. "While sales were up considerably over one year ago—and supply was tight in many of the city`s hot pocket areas—the expected surge in average price did not occur. Buyers remained cautious in their pursuit of homeownership—with most unwilling to overpay for the privilege. "

While one quarter of all TREB districts saw prices in the detached housing category soften in 2009, just over half declined by less than two per cent. Those that saw prices fall by more than two per cent were primarily upper-end neighbourhoods—the vast majority located in the central core—which were slower to rebound once the market regained momentum. By year-end, however, sales in all of these areas posted double-digit growth—a fact that clearly indicates a greater number of transactions at the lower end of the price spectrum. Inventory may have also played a role as sellers held off listing their luxury properties until market conditions improved.

Read the full article here.

 

[Ally]

Suburbs the big winner for price appreciation

To those who bought a home in the suburbs last year because they couldn`t afford a property downtown: Start counting your cash.

Home buyers in the Toronto market looking for affordable single detached homes headed to the burbs, resulting in a run-up in prices with property outside the central city appreciating the most in 2009 over 2008, according to a Return on Investment report by ReMax Ontario Atlantic Canada.

As many first-time buyers were lured by low interest rates in 2009, "affordability factored in heavily" with suburbs being the default choice as places to raise young families, according to the report released Thursday.

South Pickering took the title for best price appreciation for detached homes in the Toronto area, according to ReMax.

The average price of a home there increased 9.4 per cent to $358,493.

That`s much better than the average 4 per cent increase across Toronto for all types of properties, which includes condominiums and single detached homes.

"Pickering has been great for young families who want a larger detached home under $400,000 and it`s right on the border of Toronto," said Jennifer Pearce, a broker with ReMax. "For the same price, you`d be lucky to get a semi in central Toronto."

Read the full article here.