November Edition – Sage Thoughts on Toronto Real Estate Trends

Getting Your Home on the Market Now May Make You a Winner!

It really is amazing what can happen in one year’s time.  In October of last year, we were all sure the sky was falling.  Agents were considering part time jobs or returning to past careers…and this October, things are looking quite different.  It’s a busy month, with the multiple offer nights, and there appears to be no slowing on the horizon.

I’ve even participated in 8 multiple offers this past month!  Some clients seem to be frustrated by this – they don’t want to overpay just so they can beat someone else, but they want a house.  We need more listings to balance this market again.

The first sellers to get their homes on the market are going to be the winners – just like the people who bought up a year ago…or bought for the first time.  The drastic increase in average price is in keeping with these multiple offers.

Just look at these figures from the Toronto Real Estate Board…

• In October 2009, Greater Toronto REALTORS® reported 8,476 sales, up 64 per cent from October 2008. The average price for October transactions was $423,559 – up by 20 per cent compared to the same month last year.
• Year-to-date sales, at 74,721, were up nine per cent compared to the first ten months of 2008. Average price, at $392,264 was up by almost three per cent.
• “After a short dip in the winter, the average home price in the GTA has rebounded because sales have been high relative to listings,” according to Jason Mercer, TREB’s Senior Manager of Market Analysis. “Watch for listings to rebound in 2010 as home owners react to the strong sales and price growth experienced in the latter half of this
  year.”

Selling Time Decreased for Listed Houses

Homeowners who get their homes on the market now may not have to wait very long before they have that check in hand, according to statistics from the Toronto Real Estate Board.  In the East District last year, homes selling had been on the market for around thirty-five days.  In the West District, it was closer to forty days.  This year, homes are selling after having been on the market only around twenty-five days in both districts.

This is a positive sign that things are moving more quickly for the Toronto Real Estate industry this year.  The total average days on market are about twenty. This means that sellers can get their houses listed and sold quickly – able to move onto the next chapters in their lives without dangling over the house they are having a difficult time selling.  The forecast for 2010 looks great as well.  With those above-mentioned multiple offers, the housing market has most definitely made a turn for the better in October 2009.

2010 Listings Forecasted To Be Great

As homeowners see the improvement October has brought, more and more of them will consider listing their own homes.  With decreased selling times, higher sale prices and more sales being made – homeowners are going to want their own slice of the pie.  As John Mercer said in the Toronto Real Estate Board Report, “…sales have been high relative to listings.”  When more listings are available, we’ll see a more balanced industry where individuals can sell their homes quickly and for a price they want to see.

Breaking Down the Difference: 2008 to 2009

5,155 sales occurred in 2008 in the Toronto area.  This year, we saw 8,476.  Obviously, this is a positive statistic, especially considering the number of listings for both years.  October 2008 saw 14,530 new listings.  That means that less than half of the new listings sold last year.  However, this October saw only 11,532 new listings and more than half were sold.  The days on the market were significantly shorter this year as well.  It’s easy to see why these stats have homeowners looking to sell pretty excited – not to mention the $45,000 median price increase we saw this year.

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