December Edition – Sage Thoughts on Toronto Real Estate Trends

Toronto Home Sales Continue to Remain Strong through November.  Can We Expect the New Year to Keep Up to This Pace?

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It was another great month for Toronto real estate sellers.  We’re starting to quiet down for the Christmas holidays, but I expect that things will take off again very early in the New Year.  Many people may be reflecting on their decisions over the holidays, and I’m sure that there will be a press for people to sell their homes before the interest rates go up and the new HST takes a swing at us.

All forecasts show that the sales will be just as great once things settle down and everyone has had their holiday food and gifts – and that means individuals who need to sell should begin thinking about their options now.

Figures from Toronto Realtors are looking great…

• In November, there were 7,446 sales – this is slightly more than double the November 2008 numbers when GTA home sales had dipped markedly due to the economic downturn!
• Year to date sales are up 14% compared to the first 11 months of 2008.
• “This year in the GTA home sales will be in line with the healthy levels experienced between 2004 and 2006,” said President Tom Lebour.  “Increased resale home transactions in the Toronto area and country-wide played a key role in pushing the Canadian economy out of recession in the third quarter.”
• The average price for November transactions was up 14% year-over-year to $418,460.  The average price year-to-date was up 4% to $394,464.
• “Very strong annual growth rages for sales and average price should be expected through the first quarter of 2010, because we will be comparing the current recovery to the housing market decline experienced last winter,” says Jason Mercer, TREB’s Senior Manager of Market Analysis.  “As we move into the spring, growth rates will move to more sustainable levels.”

Holiday Home Sellers May Earn Thousands More

According to the statistics from the Toronto Real Estate Board, those interested in selling their home in December or January may earn thousands more than individuals who sold their home around the same time last year.  The median price this November was $353,800 – up more than $40,000 from last year’s $312,250.

What does this mean for individuals looking to sell now?  Even though it’s the holidays and things are settling down, you can expect to earn thousands more this year than those who sold their homes at the same time last year during the market decline.  This is just another sign that things are really looking up in the real estate industry.

Breaking Down the Difference – Nov 2008 to Nov 2009-12-10

November’s over and the results are in – we’re looking at a major increase this year.  In fact, sales in November of 2008 were around 3,640 while this year brought in about 7,446.  That’s a 105% increase!  New listings weren’t much different, with November of 2008’s numbers at 9,925 and this year’s numbers at 9,923.  The days on the market were down significantly, at 26 this year as opposed to last year’s 41.  This means that houses are being snapped up more quickly – so sellers shouldn’t have to wait long to get that check in their hand!

Taking Bets: What is the Total Difference?

Right now, for single family houses, there’s a major difference between this year and last year.  Last year, the year-to-date sales were about 74,552 with a median price of about $379,347.  With November’s numbers tallied, this year’s sales were about 81,929 with a median price of about $394,464.  I estimate that we’ll pass last year’s numbers by more than 10,000 houses sold, easily.  This is a great sign of what is to come.

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