You Don’t Write, You Don’t Call. Toronto Real Estate Market Checks Its Messages

June 10th, 2008 Categories: Market Reports, News Wire

Years ago, my phone was located where I could easily see it when I walked in the front door. I could see immediately if there were messages waiting, and I quickly became trained to look for the red blinking light first thing in the door. How did that blinky light become so important? Why was my day a little bit brighter if there were messages waiting? Upon reflection, it’s probably because I was freelancing at the time, and messages often meant contracts to sign and cheques in the mail. Toronto Real Estate Market Sends A Message. Will You Get It?? Oh, and calls from friends and family, too!

I suspect this is how many Toronto home sellers are feeling these days with respect to the Toronto real estate market. Looking for some indication that buyers are back in the market and ready to write those offers. Looking, ever looking, for that red blinking light.

The Toronto Real Estate Board (TREB) has just reported the May 2008 numbers. Let’s dump the LUDs and see what useful information we can pull from the numbers.

Toronto Real Estate
Sales Can’t Stop Falling

The Toronto real estate market just experienced its fifth consecutive month of declining year-over-year sales since the beginning of the year.

For May 2008, 9,411 resale transactions were recorded in the Greater Toronto Area (GTA), down 16% from the 11,146 sales of May 2007. In the City of Toronto (defined as the 416 area code) sales declined 19% to 3,711 resale transactions from last May’s 4,578 sales.

Is the “skinny mirror” at work again, making these numbers look leaner than they actually are when compared to the record-breaking numbers of 2007? If you can’t keep breaking records, what becomes the definition of respectable market performance?

Are We Looking At A
Toronto Buyer’s Market?

In May 2008, inventory increased to 27,267 listings, a 15% increase over last year at this time. Although not what the Toronto home seller wants to hear, potential buyers now have more listings to consider, an opportunity to actually make offers, and possibly fewer listings that go for over asking. No doubt a welcome break for weary Toronto home buyers.

Toronto Real Estate Market
Continues Price Appreciation

In the City of Toronto, prices increased by 3% to $434,271 from $422,163 the same period last year. This is what’s a little baffling. If we are moving to a Toronto buyer’s market, how can price continue to appreciate when sales are steadily declining? Some experts believe this is due to the fact that sales, while declining, are still at historically high levels. But for how much longer can prices continue to climb? People still have to eat!

Is There A Message For
Toronto Real Estate Market?

Yes, the red light is blinking. If you’re a home seller, don’t ignore how the market turns on consumer confidence. In the blink of an eye. Economic uncertainty and housing affordability are major issues facing the Toronto real estate market. Don’t approach the market with last year’s mind set. Understand market activity in your neighbourhood, because market performance varies according to District.

If you’re a home buyer, be open to opportunity. Don’t miss out on a house that would be great for you simply because you’re married to the idea of buying only at the bottom of the market. Pick the timing that works for you. If you find that well-priced house in a great location that you can carry, will you really care in 10 or 20 years exactly where in the cycle you bought it?

You CAN buy and sell successfully in today’s Toronto real estate market. Call Lauren at 416–550–6991 to find out how! Messages returned promptly.