January 2011 – Market Report
Here is my latest report on the Toronto residential real estate market’s activity:
Sales: Sales volume in December was down from the swollen levels of 2009 with 4,395 properties changing hands, versus 5,541 the year previous. We are now into a steady, but slower-moving market, with those numbers continuing a 21% lower year-over-year level in activity. Expect a warming trend in the spring, however, with volume increasing to higher levels.
New Listings: December also saw 4,284 new listings hit the market, down about 22% 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 continue to have a stabilizing effect on prices through 2011. Look forward to a slightly more balanced spring market and more stability allowing for buyers to take more time with purchase negotiations.
Active Listings: Active listings (total single family homes currently on the market) are still up 9% year-over-year, with 11,245 properties on the market last month, meaning that we are looking at a fairly balanced market, with considerable inventory versus the low point of 2009. It’s a great time to begin surfing the listings and snatching up deals, as properties are lingering and some owners must sell to deadlines.
Days on the Market: Listing times are starting to shorten again as the market heats up a bit, with properties taking on average around 37 days to sell as of last month – significantly longer versus the 27 days it took last year. 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 sooner.
Price: Finally, the median price of homes in the GTA in December was $355,000, up from $349,000 in the same month of 2009, with detached homes trading at a premium, priced at $450,000 last month median value. The median home price was down in December versus November, it should be noted.
Again – think fundamentals. Rates are low. The market is slower now and allows for deal shopping. Income, location and development potential should be on the forefront of considerations for investors. Home buyers also should be looking at this as a great opportunity to carefully leverage into an ideal property. The market is starting to show some great options.
Tell your friends! They’ll thank you. As always, call me if you’re interested in learning more about buying or selling real estate or are looking to make a move this spring.
Until next time,
Shaun Nilsson
1-888-712-7888
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