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Home and condo prices in Annex drop, but is it an anomaly?

National Post

Published: Saturday, October 07, 2006

Toronto's housing market remains strong after a healthy third quarter, says Royal LePage in its most recent survey of Canadian house prices. Supported by low interest rates and a robust economy, demand has been maintained across the city, causing average house prices to rise moderately. Homeowners are moving back to Toronto from the suburbs, with downtown condos attracting purchasers who want to reduce their commute times, as well as first-time buyers and Baby Boomers. On average, a detached bungalow gained 3.9% to $373,368, while a standard two-storey was up 1.4% to $481,523. Standard condominiums rose 3.8% to $252,088, year over year. While up-and-coming neighbourhoods such as Parkdale and Liberty Village became popular because of their excellent value, other areas, including Riverdale and the Annex, seem to contradict the trend. Slowing activity in Riverdale resulted in the average price of a standard two-storey home increasing by 4.6% to $340,000, but the price of a standard condominium increased by just 0.8% to $262,000. In the Annex, the average price of a standard two-storey home actually declined 4% to $715,000, while a standard condo dropped 1.8% to $393,000. Darryl Mitchell, area manager for Central Toronto, believes the Annex is an anomaly in the local market. He points out that many Annex homes have been made into duplexes and other investment-style properties, "so if you're going to buy a two-storey home [in that area], often you're buying something that needs some fixing up or renovations, whereas in many of our areas that's not the case." He cautions that sometimes a smaller group of listings makes the average price drop, but it's not necessarily indicative of the overall market in that area.

Posted on Wednesday, October 11, 2006 at 10:43AM by Registered CommenterElaine in | CommentsPost a Comment

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