The report, released Friday, said resale home prices in Toronto went up four per cent in the first two quarters of 2008, compared with homes sold during the same period last year. The average price in the first two quarters of 2008 was $427,198.

In the 905 region, the price of resale homes went up by five per cent to $365,536.

About 8,600 homes changed ownership throughout the region in June, a decline of 18 per cent from the June 2007 total of 10,451.

However, June 2008 has a lot to live up to when compared to June 2007. That month posted the best performance ever for the month of June, said president Maureen O’Neill in a release.

“This year we’re seeing a return to calmer conditions but the market remains healthy,” she said.

O’Neill said the decrease in sales is related to an increase in houses listed in recent months.

“The increase in listings… has resulted in a slightly longer period during which homes are on the market, from 29 days a year ago to 34 days currently,” said O’Neill. “This has given buyers and sellers a little more time to make well-considered decisions.”

The American real estate market has dropped to pre-boom 2004 levels, a closely watched housing index shows. The 20-city S&P/Case-Shiller Home Price Indices for April was 169.85, compared with 167.43 in August 2004, evaporating the appreciation homebuyers saw in the past four years.

“We’ve erased the last four years of gains,” a vice president of index analysis at Standard & Poor’s, Maureen Maitland, said. “Home prices are still falling, and the pace of the decline does not seem to be abating.”

Nationwide, the 20 major American cities in the index, which tracks the sale of single-family homes monthly, declined a record 15.3%, with 13 cities reaching all-time lows. In New York, home prices dropped 1.3% in April from the month earlier period, and more than 8% year over year.

In a separate report released yesterday, the Office of Federal Housing Enterprise Oversight, which looks at lower-priced homes that have government-backed mortgages, said prices across the country fell 0.8% in April compared with March, and 4.6% year over year, reaching December 2005 levels. The two reports measure home prices differently, an economist at Global Insight, Patrick Newport, said. “The truth is somewhere in between the two,” he said. Both are “telling a consistent story that prices are dropping nationally.”

“Prices are probably going to drop quite a bit more because there’s so much inventory out there,” Mr. Newport added.

For the first time this year, every city measured in the S&P/Case-Shiller index saw a year-on-year drop. Charlotte, N.C., which had been the only city in the survey to post annual growth the other months this year, saw an annual price decline of 0.1%. In 10 of the cities in the index, annual declines were in the double digits, while seven cities posted drops of 20% or more.

The index does not measure condominium or co-op sales, so few Manhattan homes are reflected in the number, although it does include single-family homes in the other boroughs.

“We by our makeup are different from every other market in the country,” the chief economist at the real estate firm Terra Holdings, Gregory Heym, said. “Prices in Manhattan have yet to significantly fall.”

Mr. Heym said he does not expect any “dramatic changes” in the second-quarter data, to be released next week.

The cities with the largest decline in the index are Las Vegas, with an annual decline of 26.8%, and Miami, with a drop of 26.7%. Chicago, Cleveland, and Denver, while still posting declines, showed some improvement in annual figures from last month, indicating that price drops in those markets may be slowing.

Resale housing activity across the Greater Toronto Area for the first half of May is showing signs of increased weakening.

Sales are down 12 per cent across the GTA compared to the same time last year.

Existing house sales in the GTA went down by 7 per cent in April, as compared to the same month a year ago.

In Toronto, sales plummeted 15 per cent in the first two weeks of May.

That has led to an increased inventory of homes for sale.

The good news, according to the Toronto Real Estate Board, is that there is more choice for home buyers.

The typical home now is on the market an average of 35 days, as opposed to 28 dqays a year ago.

However, the slower activity is not reflected in the prices.

Home values are still rising, according to the Toronto Real Estate Board.

Prices across the GTA averaged $400,817, up six per cent from a year ago.

In Toronto, prices were up six per cent to $437,205.

And although sales are softening, there are still pockets that enjoyed a heightened activity during the first half of the month.

The Annex saw transactions climb 39 per cent.

The Danforth area saw sales spike 29 per cent.

And Streetsville, in Mississauga, saw a five per cent increase in the price of detached homes, the board reported today.

With 8,762 houses sold in the Greater Toronto Area, April’s resale housing activity was down seven per cent from the record 9,452 transactions from the same timeframe a year ago, Toronto Real Estate Board President Maureen O’Neill announced today.

“The market is showing signs for a healthy 2008 compared to the diminished activity we saw in the first quarter of the year,” said Ms. O’Neill. “We continue to experience a supply and demand situation and to-date, it remains a sellers market.”

Sales activity however, was markedly different in the 416 and 905 regions. With 3,467 transactions in the City of Toronto, sales were down 10 per cent from a year ago. The 905 region was down five per cent from April 2007 sales, with 5,295 homes changing hands.

April’s GTA average price was $398,687, up eight per cent from the same period a year ago. In the City of Toronto, the average price was $446,781, up six per cent from last April. In the 905 region the average price increased five per cent compared to a year ago, to $367,196.

Several neighbourhoods experienced strong sales in April.

Scarborough East (E08) saw an eight per cent overall sales increase compared to April 2007, driven by robust detached home sales.

Caledon (W28) experienced a 15 per cent increase compared to the same timeframe a year ago as a result of strong condominium sales.

Condominium sales also drove Willowdale (C07) to a 32 per cent increase from a year ago.

In Thornhill sales increased eight per cent from last April due to strong detached home sales. “The number of listings on the Toronto Real Estate Board’s Multiple Listing Service has increased to 24,539, up seven per cent from a year ago, which is good for homebuyers, who will find a greater range of options in the market,” said Ms. O’Neill. “With prices continuing to appreciate and increased listing inventory there are favourable factors in today’s market for consumers.”

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Calgary’s MLS listings are taking twice as long to sell over last year, according to figures released by the Calgary Real Estate Board (CREB). Calgary’s MLS listings remain elevated for April indicating two things: Calgary is in a buyer’s market, and secondly, sellers need to pay attention and price their homes appropriately for today’s market and ensure that their homes are well staged and well kept in order to encourage buyers.

Single family Calgary metro new listings added for the month of April totaled 3,377, an increase of 8.9 per cent from April 2007 when new listing added totaled 3,100 and a decrease of 3.3 per cent from last month, when new listings coming to the market were 3,493. Calgary metro condominium new listings added in April 2008 were 1,493, showing an increase of 29 per cent from the 1,157 new condominium listings added in April 2007 and a decrease of 4.4 per cent from last month’s condominium listings of 1,561.

Single family Calgary metro sales for the month of April came in at 1,363, showing a decrease of 34.7 per cent from the 2,086 sales in April 2007 and showing a decrease of 3.9 per cent from last month’s sales of 1,418. Condominium sales for the month of April were 581, a decrease of 30.8 per cent from the 839 condominium sales recorded in April 2007 and showing a slight increase of 2.8 percent over the 565 condominiums changing hands in March 2008.

“Given the hectic pace of the resale market in the last few years, many buyers are breathing a sigh of relief. There are more listings on the market, which means more choice for the buyers, with more inventory, buyers are taking their time to find the home that is right for them at the price that is right for them. What that means however, for a seller; you now need to pay more attention to how you price your home. The market is no longer bearing the prices that it did a year ago. A professional Realtor who understands what is going on in the market can help the seller with all of these issues in order to more effectively sell a home”, said Calgary Real Estate Board President, Ed Jensen.

The median price of a single family Calgary metro home in April 2008 was $420,000 showing a decrease of 2.8 percent over April 2007, when the median price was $432,000 and showing no change from last month when the median price was also $420,000. All Calgary Metro MLS(R) statistics include properties listed and sold only within Calgary’s City limits. The median price is the price that is midway between the least expensive and most expensive home sold in an area during a given period of time. During that time, half the buyers bought homes that cost more than the median price and half bought homes for less than the median price.

The average price of a single family Calgary metro home in April 2008 was $474,564, showing almost no change from last year, up just 0.1 per cent from April 2007, when the average price was $474,250. The average price of a Calgary metro condominium was $312,586, showing a 5.1 per cent decrease from April 2007 when the average price was $329,429. Average price information can be useful in establishing trends over time, but does not indicate actual prices in centres comprised of widely divergent neighbourhoods or account for price differentials between geographical areas.

Diminished listing inventory, which at 20,533, was down six per cent from a year ago, kept prices strong in March. Compared to last March, the average price in the GTA rose four per cent to $380,338 and two per cent in the City of Toronto to $404,361.

As well, a few neighbourhoods experienced increased sales activity last month.

Bowmanville (E17) saw a three per cent increase in transactions compared to March 2007, driven primarily by strong detached home sales.

Sales in Burlington (W25) were up 18 per cent compared to a year ago, with brisk activity in most housing categories.

Thorncliffe Park (C11) saw a six per cent overall increase in transactions, based mainly on semi-detached sales.

Increased semi-detached transactions also drove sales in Georgina (N17) up one per cent compared to last March.

Ms. O’Neill says March’s moderate performance isn’t disquieting given that Canadian economic fundamentals are holding steady.

“Forty per cent of international households that come to Canada settle in the GTA, giving us robust immigration levels; employment and wages continue to be strong; borrowing costs remain at historically low levels and there is a wide variety of mortgage products from which to choose,” she said.

“This means that there is a steady demand for housing and consumers should have the financial resources to buy homes; with such pent-up demand it is an excellent time to sell your home.”

“We remain concerned about the land transfer tax in Toronto and the economic slowdown in the United States,” added Ms. O’Neill. “Home sales in the City of Toronto spiked towards the end of 2007 probably in a bid to avoid the Toronto land transfer tax, but have since dropped off since the introduction of the tax.”

See the Toronto Real Estate Board’s Market Watch Report »

With a more competitive, balanced market upon us, many sellers want to know what they can do to make their home sell faster and for more money. Besides pricing it and staging it correctly, a pre-listing home inspection can create a competitive advantage for the informed home seller.

While it is normally done before a home goes on the market, it can be done simultaneously with listing provided the results are received quickly and any necessary changes made to the property disclosure.

A pre-listing inspection creates several advantages for a smoother home sale both for the seller and the buyer. For the seller, the pre-listing inspection reveals any unknown problems that could create issues later and gives the seller the chance to research the proper remedies without the added stress of having a buyer waiting in the wings.

Additionally, while even a brand new home can have a long list of minor things that need to be fixed or addressed, having these things revealed in the pre-listing inspection gives the seller the opportunity to take care of things that while not major issues, could scare a first time home buyer away or leave a poor impression about the home or the manner in which it is being maintained.

For the buyer, seeing that a seller cares enough and is motivated enough to have their home pre-inspected can create a good impression and relieves some of the stress normally associated with the purchase of a home. While buyers and sellers may not always agree on price, knowing that a home is in good condition or has no hidden defects can be reassuring to a buyer and may make them more likely to offer fair price for a home vs. having so many unknowns out there that could result in a lower offer.

If you are selling a pre-inspection is something you should consider carefully.

It’s definitely a different animal from websites that merely list contractors, trades people and suppliers who have paid a fee to advertise on the site. While those sites are helpful in finding contact information, there’s usually no indication whether the companies listed are recommended, highly or otherwise, by past customers. HomeStars.ca gives us that in an on-line directory where “consumers can read and write real reviews on renovators, retailers and repairmen” in the greater Toronto area.

Visit the HomeStars website »

“To get an accurate perspective of current market conditions, a number of factors have to be considered,” said Ms. O’Neill. “With 18,018 properties available for sale, inventory has decreased seven per cent from last February.”

“This indicates that despite moderate sales, there is not an over-supply of homes on the market. Generally, properties that are listed are selling fairly quickly and with a list to sale price ratio of 99 per cent, for the most part, sellers are realizing their asking price,” O’Neill added.

Despite the decrease in the number of sales from this time last year, there was positive news with respect to prices in February. At $382,048 in the Greater Toronto Area and $424,235 in the City of Toronto, the average price increased four and two per cent respectively compared to February 2007. As well, the time on market in February was 30 days compared to 35 days a year ago.

Despite the overall decline, some GTA neighbourhoods experienced strong sales in February.

In Pickering (E13) sales rose 28 per cent overall compared to a year ago due to a strong increase in condo townhouse and condo-apartment transactions.

Strong condo-apartment sales also drove transactions in Rexdale (W10) to an overall increase of 18 per cent compared to February 2007.

Richmond Hill North (N05) experienced a 19 per cent sales increase compared to a year ago primarily as a result of strong detached home transactions.

“All economic indicators are in place for an active year in the GTA, and as the weather improves sales are expected to increase as well,” said Ms. O’Neill.

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During the forum, keynote speaker Phil Soper, President and CEO of Brookfield Real Estate Services commented, “Our expectations are that balanced conditions will prevail throughout 2008, which will mark a return to a more ‘normal’ environment than the highly skewed seller’s market that we have experienced over the better part of this decade. A stumbling American economy will impact us, slowing growth here at home, yet the solid foundation that supports the contemporary Canadian economy should prevent the housing market here from retracting.”

Also speaking at the conference was Adrienne Warren, Senior Economist, Scotiabank. “We expect construction, sales and price gains to moderate in 2008 due to decreasing affordability, especially for first-time buyers, and some softening in domestic economic conditions associated with the intensifying U.S. slowdown,” remarked Ms. Warren while presenting the findings of her latest Real Estate Trends Report. “Housing starts will likely ease to around 204,000 units, still firmly above underlying household formation, with the more affordable multiple-family segment holding up better than single-detached construction.”

Ms. Warren added that more balanced resale market conditions, as sales volumes edge down and more listings come on stream, should bring average price increases back into the mid-single digit range. Renovation activity, which lags the trend in home resales by one to three years, will outperform new construction.

Mr. Soper added, “New flexible financial products, affordable interest rates and increasing choice in the condominium market across Canada, will continue to attract first-time buyers to real estate – even in high-priced markets. We can also expect to see a broadening buyer pool, as emerging high growth market segments such as single female buyers are anticipated to take advantage of the favourable market conditions.”

Economic conditions still favour Western Canada

In her report, Ms. Warren states that housing starts totaled 228,343 units in 2007, essentially matching the high level of activity of the prior two years and only two per cent below the 233,431 unit peak of 2004. Strength was evident across the country, but led by more than a 60 per cent surge in new homebuilding in Saskatchewan, underpinned by strong job growth, good affordability and a positive shift in net interprovincial migration. Resale activity was equally brisk, with MLS sales volumes reaching a new record in 2007 and average home prices climbing a further 11 per cent. While Western Canada continues to lead in price appreciation, average prices rose by at least five per cent in all provinces last year. The momentum of construction and sales has carried through to 2008.

Ms. Warren also reports that from a demand standpoint, economic conditions still favour Western Canada, with its booming resource-based industries and extremely tight labour markets. Yet, affordability is becoming a constraining factor in several centres, including Calgary where average home prices have doubled in the past four years.

From a supply perspective, most Canadian markets are still in sellers’ territory, in which prices would be expected to rise faster than inflation. Yet, some of the hottest markets in recent years, including Edmonton, have become much better balanced due to a flood of new listings. Based on a combination of job growth, housing supply and affordability, among this year’s potential outperformers are Saskatoon, Regina and Winnipeg in the West, Sudbury, Hamilton and Quebec City in Central Canada, and St. John’s to the East.

Commercial markets to lead

Commercial market activity in Canada should be brisk in 2008 even as the pace of residential building gradually cools. Notwithstanding a number of major new office tower developments currently underway, centred in Toronto and Calgary, significant new space is not expected until 2009.

“Given a high pre-lease ratio, vacancy rates should remain low and rents on the rise,” Ms. Warren said in her presentation. “The national downtown office vacancy rate hit a 22-year low of just 4.7 per cent in the final quarter of 2007, with both Calgary and Vancouver below the three per cent mark. Demand for new office space is being supported by strong employment growth, environmental and technical upgrades, and institutional investor interest.

A housing boom for the history books

Ms. Warren concluded her presentation with the discussion of real home price appreciation, noting that Canada’s current housing boom is the strongest and longest of the post-war era. Between 1998 and 2007, average inflation-adjusted home prices have soared some 65 per cent, easily besting the 32-56 per cent appreciation of the prior three housing cycles of the 1960s, 1970s and 1980s. At their peak in 2005, U.S. real home prices had increased a cumulative 48 per cent from the 1995 trough.

“Canada’s record price gain owes entirely to the longevity of the expansion,” said Ms. Warren. “The current housing upswing is going on ten years, whereas the prior three cycles ranged from five to six years. It has also outlasted the housing booms experienced in many other advanced economies this decade. Average annual price appreciation over this period has actually been quite typical at just under six per cent per year, and well below the almost 10 per cent average annual price gains recorded in the late-1980s.”

Economy to maintain moderate growth

Aron Gampel, Vice-President and Deputy Chief Economist, Scotiabank, also provided a brief overview of the changing economic and financial conditions that are affecting the Canadian outlook.

According to Mr. Gampel, “the Canadian economy is likely to maintain moderate growth this year and next, with the strength of the development boom in the resource-rich regions of the country providing a much needed offset to the increasing drag on our manufacturing centres from the intensifying U.S. slowdown and persistently strong currency.”

Mr. Gampel added that “while underlying domestic fundamentals are still encouraging and broadly supportive of the real estate market, the increasing downside risks to the U.S. outlook could further restrain housing’s overall performance.”

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