Daily Market Update

Toronto condo constructions hit new record
Construction of condos in the Greater Toronto Area is ending the year on a high. Following some tough conditions at the start of 2014, not least from the freezing conditions, the market has grown sharply. Although the analysts don’t agree on an exact number, they put it around 20,000 with an increase of almost a third year-over-year. Urbanation, which estimates 21,500 units were completed this year, says that’s around 5,000 higher than average and with almost 500 projects currently underway across the GTA there should be plenty of supply in 2015 too. One of the factors driving condo demand in the GTA is positioning of developments in close proximity to transit links, popular especially with young professionals and families. Average prices have been rising as well, with TREB figures showing a year-over-year increase of 12 per cent across the whole GTA to $310,220.
 
Canadians less optimistic of growing house prices
The latest figures from the Bloomberg Nanos Canadian Confidence Index show growing pessimism over property prices. The index is based on weekly telephone polling. The latest data, for last week, shows that 34.7 per cent of respondents believe home prices will be higher in six months, that’s down from 37.8 per cent in the week earlier. Those who felt prices would go down increased to 13.9 per cent, a rise of 0.6 per cent from the previous week. When asked about the overall economy, 29.9 per cent felt that it would not be stronger in six months, up from 26.4 per cent a week earlier. The low oil price is the main factor impacting the falling optimism with a slowdown in the energy sector and lower oil revenues for government among the concerns.
 
U.S. existing home sales fall but first-timers increasing
Home resales south of the border have fallen to a six-month low according to new data. The National Association of Realtors said yesterday that sales of existing homes dropped 6.1 per cent in November, hitting their lowest mark since May 2014. The annual rate of sales is 4.93 million, a 2.1 per cent rise from a year ago. While the U.S. economy is a shining light in global economics at the moment, the housing market has failed to ignite with some positive gains followed by weaker data. One area that is improving in the U.S. is first-time buyers. As the jobs market and wages increase new entrants to the housing market accounted for 31 per cent of November’s transactions; the highest rate since October 2012.