Market Report: Febuary 2010
Here is my latest report on the Toronto residential real estate market’s activity:
Sales: Again we are seeing close to double the number of sales year-over-year with 4,986 properties changing hands last month, versus only 2,670 the year previous, reflecting the low-volume trough we experienced in early 2009. That 87% positive change is powering the growth in asset value we are seeing in the market. If you bought at this time in 2009, good for you. This sellers’ market won’t last though, so get in now if you’re hoping to liquidate this spring.
New Listings: The usual January spike in new listings was present last month, with new listings on par with January 2009 at 10,021 new properties on the market (there were 10,360 in ’09). To me, this indicates that sellers have started to hear the news about the hot market but are cautiously trickling in.
I’ll reiterate for vendors in 2010: definitely get your property listed in the early spring market. You are in the perfect storm for selling and ‘trading-up’ in Toronto property because of aggressive mortgage rates, low inventory and the impending HST.
Active Listings: Same thing we’ve been seeing for the past 9 months here. Active listings (total homes currently on the market) are still down a whopping -41% year-over-year, with 12,052 properties on the market, meaning that the wave of sellers has not balanced the market yet, although I expect this trend will change in the early spring, which will make for an extremely active market. I expect we may see record sales volume before June if these market forces remain consistent.
Days on the Market: The trend is toward much faster sales as well, generally benefiting sellers, with properties taking on average 43% less time on the market to sell, down from 49 days to only 28 days this year, a steady number again from 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, sellers rejoice – the median price of homes in the GTA in January was $350,000, up from $303,000 in the same month of 2009, with detached homes trading at a premium, priced at $445,000 last month median value.
Look for this growth to continue into the spring, though with a more balanced, stable market. Sellers will be coming to the table in droves following a smooth winter economy and news of the buy pressure. People tend to prefer moving in summer months and so I suspect May and June will see a huge number of real estate closings, and I certainly already have closings in these months – 4 months out – which is unusual. Watch out for closings after July 1 as well, as your closing costs and possibly your home itself will be subject to an 8% tax increase, due to the fabulous HST. Yikes!
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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