Toronto Real Estate Market Roars Into November
November 8th, 2007 Categories: Market Reports, News Wire
The Toronto Real Estate Board (TREB) reports that October 2007 set a new record for the month, as 7,915 transactions of single-family homes were recorded. This is an increase of approximately 15% over the 6,876 figure recorded in October 2006, and up about 10% over the 7,227 transactions written in October 2003 (the previous record holder for the month).
It would appear that each record set is a snack in the path of the Godzilla-like Toronto real estate market.
“There is every indication that 2007 will be a banner year for resale housing activity in the Greater Toronto Area”, said TREB President Maureen O’Neill. According to Ms. O’Neill, although the effects of the new Toronto land transfer tax will be felt in 2008, consumers will continue to see the value of real estate as a solid long-term investment.
Complete details of October’s Toronto real estate market performance can be found on the Toronto Real Estate Board’s web site.
First-time Toronto Home Buyers Adjust Expectations
Impressive numbers. But the number that stops me in my tracks is the average home price in the Toronto area is now $394,646. A lofty number indeed, one that will force many first-time home buyers to lower their expectations as to what they can expect to buy and where that property will be located.
I think this figure jumps off the page at me because I have been working with a number of first-time home buyers the last couple of weeks, and their expectations as to the entry price for a solid 3-bedroom starter home are unrealistic, absolutely out of synch with the Toronto real estate market. I’ve given lots of thought as to how expectations can get this way, but that’s for another post!
Savy first-time buyers, although initially disappointed that their dream starter home is out of reach, are prepared to reconsider the type of house they can actually afford, will get a grip on the reality of the market, work hard to find the best home in their price range and start to build their equity. Others will resist, chasing homes that simply don’t exist, often missing out on great properties that are in their price range. In today’s market, you can be the buyer that buys or the buyer that dreams of buying.
Is the Toronto Real Estate Market Unstoppable?
The Toronto real estate market has had legs for about a decade. Some believe that we are at the peak of the market; others that Toronto is still an affordable market compared to other major cities. How long can the appreciation of Toronto real estate prices continue? What, if anything, will cause the Toronto real estate market to stall or stumble?
Excellent questions. Time will deliver the answers.
