No Sudden Moves! Toronto Real Estate Market Seeks Its Balance
July 11th, 2008 Categories: Market Reports, News Wire
It must be difficult to walk the tightrope, non? Far above the crowds, all eyes expectantly trained on you as you walk the thin wire. Fighting for your balance, knowing that the slightest hesitation or lack of confidence will send you tumbling to the ground. Knowing there’s always someone that hopes you will fall.
The Toronto Real Estate Board (TREB) has just reported the June 2008 numbers. Just think: we’re half-way across the wire! It’s been quite a nerve-wracking market performance to this point; off to a good start to the year but quickly encountering challenges.
Can the market stay on the wire? Let’s review the numbers; I’ll help you, just don’t look down!
Toronto Real Estate
Sales Continue To Tumble
For June 2008, 8,600 resale transactions were recorded in the Greater Toronto Area (GTA), down 18% from the 10,451 sales of June 2007. In the City of Toronto (defined as the 416 area code) sales declined 18% to 3,481 resale transactions from last June’s 4,238 sales.
When comparing the first two quarters of 2008, GTA sales declined by 14% to 43,685 transactions compared to the same period a year ago, but declined by only 5% compared to the same period two years ago. Sales for the City of Toronto declined by 15% to 17,370 transactions compared to 2007 and declined by 8% from 18,917 in 2006.
Feeling a little unsteady on the wire? Look straight ahead and keep in mind that 2007 was the Best Year Ever for the Toronto real estate market. If it makes sense for you to buy or sell at this time, don’t let the sway undermine your confidence!
Don’t Trip Over The Inventory!
In June 2008, inventory increased by 22% to 27,000 listings. This translates to more selection for buyers. The increase in listings has also resulted in a longer Days On Market (DOM). As the Toronto real estate market works through inventory we are seeing well-priced (note: well-priced!) homes on the market 34 days compared to 29 days a year ago. Sellers who over-price their homes are sitting far longer! And keep in mind DOM does vary by neighbourhood.
Will Toronto Real
Estate Prices Hold?
The market anomaly continues to be price appreciation. With sales dropping by 18% year-over-year, the average price in the City of Toronto increased by 3% to $433,082 over the same period last year. This could be attributed to the fact that sales, while falling, are still at historically high levels and continued low interest rates. Nonetheless, as the market transitions how long can prices continue to climb?
Is Toronto Real Estate
A Balanced Market?
Are we trending towards a more balanced market? TREB reports that we are; however, I believe the numbers indicate we are currently experiencing a buyer’s market based on increase in inventory and DOM, plus fewer sales year-over-year. We certainly have some listings to work through before there’s balance in the market.
Are you thinking of buying or selling in today’s market? Call Lauren at 416–550–6991 to find out how I can help you walk the Toronto real estate wire. My balance is excellent!
The GTA is a prime example of what is happening with the RE market today. Basically as a Vancouver realtor I see that the GTA market is much calmer than Vancouver’s. Since the prices in Vancouver are STILL high and rising, even though the inventory is high too. It seems that Vancouver is in it’s own bubble so to speak. Some think that a buyers market is not as good as sellers, but it had to happen seeing the first quarter price soars.
Jay
Looking back at this it is only fair to say the same about CURRENT market conditions as of April 2010. Vancouver seems to be in a bubble once again. I wonder what will happen when interest rates adjust, new mortgage rules come into effect, and the correct adjustments take place.