Market Report: November 2009
Here is my report on the Toronto residential real estate market’s activity:
Sales: Sales are way up year-over-year with 8,476 properties changing hands last month, versus only 5,155 the year previous. That 64% positive change is similarly well reflected in the return of the capital appreciation levels we are used to seeing annually in this market.
New Listings: The trend toward a sellers’ market continued in October, which saw brand new listings on the market down to only 11,532; off 11% from the 14,530 we experienced in October 2008. The difference was even evident at ‘street level,’ with buyers scrambling to snatch up limited good properties quickly before entering into multiple offer competition. Now is still a great time to sell.
Active Listings: The total number of properties available on the market is also down a whopping 46% year-over-year! In 2008, we saw 27,277 properties for sale in October, versus only 14,771 this year. Considering that 64% more actual sales are taking place, one can immediately see the huge supply/demand issue that is currently going on. Buyers are loving these low rates, and smart sellers are taking advantage!
Days on the Market: The trend is toward much faster sales as well, generally benefiting sellers, with properties taking on average 30% less time on the market to sell, down from 37 days to only 26 days. 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, confirming our suspicions, the median price of homes in the GTA in October was $357,000, up from $312,000 in the same month of 2008. This represents a 14% positive appreciation over last year’s prices and nearly a 3% gain from September 2009!
The sellers’ market will persist until enough new listings flood in to balance it out. Rates have still not shot up as we expected, and so there is a strong few months of this buying madness ahead, with shoppers holding guaranteed low rates from their lenders. Since many people elect not to sell in the winter, I can certainly envision this market strength carrying over until the HST is enacted in June 2010. (Side note: Looking to buy? You may want to consider getting into the market before the Harmonized Sales Tax effectively raises your costs 8% – especially on pre-construction and new sales!)
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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