Toronto Market Update - Fall 2008

November

Economic Forecasts Lead to a Slower Market in November

This month in Central Toronto real estate, home sales were down -59% while average prices were down -9% to $473,346. Average days on the market for central Toronto real estate went up to 35 days (up 46%) and the average sold price as a percent of list went from 100% to 96%.

With the media screaming doom and gloom at every opportunity, buyers and sellers were idle this month, as they contemplated the fate of the market. My clients constantly ask me, "where is the market going?" and "when will we hit bottom?" I wish I had a crystal ball. Clearly the housing market is so closely tied to the economy that every economic ripple makes a dent in Toronto housing. All I can say is, it's a great time to be a buyer! Especially those first time buyers. There are great deals to be had right now, not to mention those new low interest rates.

Why not wait and see what happens? Well, you're not the only one thinking that way. The reality is,  if everyone waits and jumps back in at the same time, the laws of supply and demand suggest prices just may head right back up.

How should you feel as a seller? Well, if you are planning to buy again, and even considering upgrading, you will either net our neutral or ahead, so don't fret.

 

October

Steep Drop in October - A Sign of a Tumultuous Month for All

This month has been a tough one for all, with unprecedented volatility in the stock market making home buyers tremble at the site of their portfolios. Home buying in Toronto was not on people's minds this month, as we saw a steep -44% decline in Toronto Real Estate sales in Central Toronto. Prices were down -14% to $450,437 and houses sat on the market for 6 days longer on average than they did a year ago. Anything that did sell this month, went below asking at 97%, a -4% difference from last year's 101% of asking.

What will November bring? It is anyone's guess at this point. Mine is that we will see a little more of the same. Tough economic times are on the horizon and it is causing a market adjustment to occur in Toronto. Great news for first time buyers. For the rest of us, well, as they say, make sure you buy and sell in the same market so it all evens out in the end.

 

September

 

Sales Down and Prices Slide in September

We are beginning to see the effects of the U.S. downturn creeping south of the border this month, with home sales down in central Toronto by -18%  from the 1,298 recorded sales of September 2007. Prices have also slipped this month, down -7% to an average of $464,397. Average days on the market is up 8 days to 30 days and the sold price as a % of list has decreased from 101% to 98%. We may be seeing the beginnings of a buyer's market emerging in Toronto, as buyers are finally able to negotiate on price and are being afforded the luxury of a little thinking time before they leap.