Have You Seen This Person? Buyers Take Break From Toronto Real Estate Market
September 7th, 2008 Categories: Market Reports, News Wire
The Toronto Real Estate Board (TREB) has just reported the August 2008 numbers. I’ve always believed that August is the slowest month in everything as no one wants to rush the end of summer holidays and the return to routine. So, did the real estate market also take a holiday this year?
Let’s find out!
Are Toronto Buyers
On A Summer Break?
For August 2008, 6,318 resale transactions were recorded in the Greater Toronto Area (GTA), down 22% from the 8,059 sales of the record-breaking August 2007. In the City of Toronto (defined as the 416 area code) sales declined 25% to 2,437 resale transactions from last August’s 3,243 sales.
When comparing activity to the same period two years ago, GTA sales declined by 9% from the 6,976 transactions recorded in August 2006, and City of Toronto sales declined by 10% from the 2,706 units transacted during August 2006.
It’s important to note that market performance, such as price appreciation and sales activity, varies according to neighbourhood. Savvy buyers that are priced out of Toronto’s centre core adjust their expectations and search elsewhere. As such the east end, west end and suburban neighbourhoods may start to outperform as (for now) the centre core shows signs of topping out price-wise.
Toronto Buyers Can
Benefit From Inventory
In August 2008, properties available for sale increased by 31% to 25,076 listings. This translates to more choice for Toronto home buyers and a longer Days On Market (DOM), with properties remaining on the market for an average of 36 days compared to 33 days a year ago.
Given the shortage of properties the last couple of years, this summer Toronto buyers had the opportunity to seize the moment and benefit from an increased selection of properties and the (possibly) less-frenzied offer presentation. So given the subdued sales numbers, is there such a thing as having too much choice in the Toronto real estate market? What keeps the motivated buyer on the sidelines?
Toronto Real Estate
Prices Refuse To Wilt
In the City of Toronto, year-over-year the average price declined 1% to $377,990. However, this is an increase of 10% compared to the average price of $344,419 in August 2006.
Although sales are falling and inventory is building, price appreciation has not yet taken a drastic drop as many Toronto buyers are no doubt anticipating; certainly it’s slowing, but it will take several months before a trend emerges.
And much depends on the state of the economy: jobs, interest rates, availability of money, the upcoming US and Canadian elections, the continued strength of the loonie, and so on.
Summer’s over! You CAN buy and sell successfully in today’s Toronto real estate market. Call Lauren at 416–550–6991 to find out how.
