August 2010 – Market Report
Here is my latest report on the Toronto residential real estate market’s activity:
Sales: We’re halfway through the summer market, represented by 6,564 properties changing hands last month, versus 9,967 the year previous. This is definitely representative of a slower moving market, with those numbers indicating a 34% drop year-over-year in activity. Anecdotally, there seems to be a bit of lingering in listings of commoditized properties like lower-end condos. The time to start snatching these up and engaging in a return to basics in investing may be upon us. Think core values.
New Listings: July also saw 10,825 new listings hit the market, down 11% from the number listed in 2009. This is a reversal of the sell-side flood of properties we had been seeing for the past few months. This will likely have a stabilizing effect on prices if it continues through August and into the more active fall season.
Active Listings: Active listings (total single family homes currently on the market) are up 28% again year-over-year, with 21,714 properties on the market last month, meaning that the new wave of sellers has more than completely balanced the market. The sellers have come to the table in droves, but buyer confidence is (perhaps unjustly) low. It’s a great time to begin surfing the listings and snatching up deals, which is what I’m personally doing with my portfolio and that of my investor clients.
Days on the Market: As discussed, the trend is now toward longer list times, generally benefiting buyers, with properties taking on average around 33 days to sell as of last month. You are encouraged to remember that this number represents the time until deals are firm and reported, and often includes a conditional sold period of up to 2 weeks. Consequently, these properties are effectively off the market much sooner.
Price: Finally, the median price of homes in the GTA in July was $361,000, up from $339,900 in the same month of 2009, with detached homes trading at a premium, priced at $450,500 last month median value. Versus last month, this represents a slight median drop in market price.
Now may be a great time to snatch up deals. Look to properties with core values, like location, size, number of bedrooms, parking, access to transit, etc. This is not a market in which you want to fall for the ‘bells and whistles’ promoted by development corps for the past several years. Stick to the fundamentals and diversify if possible… remember: lending rates are still low.
Tell your friends! They’ll thank you. Call me if you’re interested in learning more about buying or selling real estate.
Until next time,
Shaun Nilsson
1-888-712-7888
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