January 2010 – Market Report
Here is my report on the Toronto residential real estate market’s activity:
Sales: Again we are seeing more than double the number of sales year-over-year with 5,541 properties changing hands last month, versus only 2,577 the year previous, reflecting the low-volume trough we experienced in 2008. That 115% positive change is powering the enormous growth in value we are seeing in the market. If you bought at this time in 2008, you’re laughing now!
New Listings: The warming trend in new listings continued last month, increasing 6% over December 2008 with 5,506 new properties on the market (there were 5,215 in 2008). To me, this indicates that sellers have finally started to hear the news about the hot market and are becoming more active.
Suggestion to 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 old story here. Active listings (total homes currently on the market) are still down a whopping -47% year-over-year, with 10,292 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 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 40% less time on the market to sell, down from 45 days to only 27 days this year, a steady number 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 December was $349,000, up from $305,000 in the same month of 2008, with detached homes trading at a premium, priced at $439,000 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. 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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@ January 25, 2010 at 3:02 pm
Kenny says:
Days on the Market is interesting 45 days on the market seems like a short time.