A Review of the Toronto Real Estate Market for the entire year 2010
The Toronto Real Estate Board reported 4,395 home sales for the month of December, bringing the 2010 total to 86,170 – only one per cent less than record breaking 2009 and the 3rd busiest year on record.
But while sales numbers were high, it was probably also the most volatile year we’ve seen in a decade. “We went from supercharged sales activity during the first four months of the year, to a marked drop-off in transactions in the summer and then in the fall saw sales climb back to levels that are sustainable over the longer term,” said TREB President Bill Johnston.
“New Federal Government-mandated mortgage lending guidelines, higher borrowing costs and misconceptions about the HST caused a pause in home buying in the summer. As it became clear that the HST was not applicable to the sale price of an existing home and buyers realized that home ownership remained affordable, market conditions improved,” continued Johnston.
The average home selling price in 2010 was $431,463 – up nine per cent in comparison to the 2009 average selling price of $395,460. In December, the year over year price growth was five per cent.
“At the outset of 2010, we were experiencing annual rates of price growth at or near 20 per cent. This was the result of extremely tight market conditions coupled with the fact that we were comparing prices to the trough of the recession at the beginning of 2009,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.
Toronto Real Estate in 2011
“Balanced market conditions in the second half of 2010 resulted in more moderate home price appreciation,” continued Mercer. His prediction for this year? “Expect the average selling price to grow at or below five per cent in 2011. With this type of growth, mortgage carrying costs for the average priced home in the GTA will remain affordable for a household earning an average income.”
East End Toronto Real Estate Statistics for December
Once again, let's compare the entire GTA market to the East End Toronto Real Estate Market, specifically the market areas E01, E02, and E03, which include The Beaches, Leslieville, Riverdale and Danforth Village, Danforth Mosaic and East Danforth.
- E01 had 44 sales, with 76 active listings at the end of the month, or a sales to listings ratio of 58% and an average price of $459,766. Average days on market – 16.
- E02 saw 33 sales, with 57 active listings at the end of the month, or a sales to listings ratio of 58% and an average price of $678,885. Average days on market – 24.
- E03 saw 68 sales, with 139 active listings at the end of the month, or a sales to listings ratio of 49% and an average price of $410,101. Average days on market – 33.
If you compare this to the overall Toronto Real Estate market, you’ll see that East End Toronto (E01, E02 & E03) has a higher percentage of sales to listings and lower number of days on the market. Total TREB sales to listings were 39% and days on market were 37.
Coming up in Toronto Real Estate Market Statistics
Watch for a future post, where I'll be discussing changes to the way Toronto Real Estate Board tracks and report sales. In particular, we'll finally see a distinction between the '416' and '905' markets!
For the full Toronto Real Estate Market Statistics report, December 2010, see below for slide presentation. Use arrows to scroll through the presentation.
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I’d love to hear your thoughts on changes in the Toronto Real Estate Market, especially regarding East End Toronto Homes. Please use the comment area below to share your views.