There were 6,310 sales reported through the MLS system last month in the Greater Toronto Area. Compared to the same period in 2009, which saw 8,196 sales, this represents a 23 per cent decrease. In the first nine months of the year, there were 69,069 sales – up four per cent compared to the first three quarters of 2009.
“The level of sales in the second half of 2010 has been lower, representing a balancing out period following record levels of sales in the latter half of 2009 and first few months of 2010. We remain on track for one of the best years in history for existing home transactions in the GTA,” said Toronto Real Estate Board President Bill Johnston.
But do buyers agree? Will the next 3 months rebound? Or will the market remain comparatively stable despite record low interest rates? I should say that there’s nothing bad about the current market, by any yardstick. The worst – or is it the best - thing I can say is that it’s turned into a ‘balanced’ market so far, where there’s a good supply of homes for Buyers, without the frantic and desperate bidding wars of the first half of 2010.
Let's all take a deep breath. And let’s not forget that nearly every Seller becomes a Buyer after the deal firms up.
“Resale homes in the GTA remain affordable,” said Jason Mercer, TREB’s Senior Manager of Market Analysis. But a recent RBC report indicates that we’ve been steadily creeping up the affordability index over the last few years. Is that what’s causing the Real Estate market to break it’s fever?
I doubt that most homebuyers refer to the affordability index before deciding to buy a home. But they do listen to the news and respond to issues like the HST coming into effect in July. Overall I think it’s going to be a great year in terms of the number of sales in the GTA. But a lot of the sales in the first half of 2010 may have occurred later in the year if not for the HST. This could just be the market balancing itself out.
Finally, the average price for all homes sold in September was $427,329– up five per cent compared to the average of $406,877 reported in September 2009. A five percent year-over-year increase in the value of a home in the GTA is not what I’d call an alarming increase.
I'd love to hear your thoughts on changes in the Real Estate Market, especially regarding East End Toronto Homes.
For the full Market Watch statistical report, see below for slide presentation. Use arrows to scroll through the presentation.