March 2010 – Market Report
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 7,291 properties changing hands last month, versus only 4,120 the year previous, still reflecting the low-volume trough we experienced in early 2009. That 77% 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: February also saw 12,726 new listings hit the market, up 24% from the number listed in 2009. Considering the low volume of sales we were experiencing last year at this time due to the depressed market, this 24% change is still not nearly indicative of a market balance, and should be viewed as evidence of a sellers’ market.
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: Active listings (total single family homes currently on the market) are still down a whopping -32% year-over-year, with 14,514 properties on the market last month, meaning that the wave of sellers has not balanced the market yet. I expect this trend will change in the early spring, which will make for an extremely active market. I expect we also may see record sales volume before June if these market forces remain consistent. Keep an eye out for that in coming months.
Days on the Market: The trend is continuing toward much faster sales as well, generally benefiting sellers, with properties taking on average 51% less time on the market to sell, down from 45 days to only 22 days (!) this year, down significantly 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. This is an unbelieveably short time for properties to sell in, on average. Buyers will need to be very quick to snatch great properties.
Price: Finally, sellers rejoice once again – the median price of homes in the GTA in February was $366,300, up from $312,900 in the same month of 2009, with detached homes trading at a premium, priced at $453,000 last month median value.
Growth in market volume will definitely continue this spring, and the next two months will likely see huge transaction numbers, with buyers getting involved before the HST deadline and with mortgage rates holding at their low levels. Sellers should be considering looking at this market as a great opportunity to get value out of their current home through a refinance or by trading up into a larger property, thereby taking advantage of amazing power of positive leverage.
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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