Toronto Real Estate Market Update

October 5, 2005 -- A record number of Greater Toronto Area homes changed hands in September as the market jumped 11 per cent over September 2004, Toronto Real Estate Board President John Meehan announced today.

"Not only is this a significant increase over last year, it is also an eight per cent increase over September 2003, the previous record. This is encouraging, as a strong start to the autumn market can help establish a solid foundation for the remainder of the season," Mr. Meehan said.

Fuelled by another strong month, year-to-date sales are now within one half of one per cent of 2004's record pace.

Jason Mercer, the Canada Mortgage and Housing Corporation's Senior Market Analyst for the Greater Toronto Area, noted that consumer confidence in the economy as a whole is supporting the strong figures.

"Consumers remain very upbeat with regard to the purchase of a home in the resale market. Steady employment growth and very low mortgage rates have kept buyers confident. Borrowing costs near 50-year lows have kept monthly mortgage payments very affordable historically," Mr. Mercer said.

Pockets of exceptionally high activity during the month could be found both within the city of Toronto and in surrounding areas.

In the East, sales of detached homes led Central Pickering to an increase of 53 per cent over September 2004.

The Cooksville / Port Credit area of Mississauga showed a 28 per cent increase in transactions for the month, compared with the previous year.

Toronto's Downtown / Harbourfront area rose 35 per cent compared with a year earlier, based on a high percentage of condominium transactions.

Condominium sales also helped North York Centre post an increase of 34 per cent over the same timeframe.

"People at all levels of the market are seeing the ongoing benefits of an investment in real estate," Mr. Meehan said.