Market Report: October 2009
As mentioned above, Toronto is back in the swing of things as far as the residential real estate market goes. Here is a look at some interesting numbers which indicate that it may be a great time tor sellers to pay attention to the market.
Sales: The number of residential sales is up 28% over last year, with 8,196 homes changing hands in September, versus 6,424 the year previous. Don’t let anyone tell you that we are in a slow market! Liquidity* is high right now for residential real estate holdings.
New Listings: New properties for sale this month, on the other hand, are down by 25% compared with last year. This means that there is an enormous surplus of buyers in the market and not enough sellers to meet the demand. In this type of market imbalance, prices tend to move upward.
Active Listings: The total number of properties available on the market is also down a whopping 42% year-over-year! In 2008, we saw 27,373 properties for sale in September, versus only 15,894 this year. Considering that more actual sales are taking place, one can immediately see the huge supply/demand issue that is currently going on.
Also interesting to note is that New Listings are down by less (25% down) than are Active Listings (42% down). This perhaps supports the suggestion that sellers are “figuring it out” and that the market is going to start balancing back out. Sellers – get in while the getting’s good!
Days on the Market: The trend is toward faster sales as well, with properties taking on average 25% less time on the market to sell, down 11 days from 36 in 2008.
Price: Finally, confirming our suspicions, the median price of homes in the GTA in September was $347,000, up from $322,000 in the same month of 2008.
All indicators point to a window of opportunity for sellers right now. During 3 open houses in the last week, within a combined total time of 6 hours, I had 115 interested buyer groups come through to view my listed properties. Incredible! Can you imagine what this kind of market presence does to the price paid for a home? It’s significant.
Tell your friends! They’ll thank you. Call me if you’re interested in learning more about buying or selling real estate. (Lord knows the buyers don’t have it so bad right now either with all-time low mortgage rates persisting. But you have to be quick or the good properties are snatched up!)
Until next time,
Shaun Nilsson
1-888-712-7888
* – liquidity describes the ease with which an asset (like a home, for instance) can be converted into cash-in-hand. In real estate, high liquidity means that properties are easy to sell for a fair market value.
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