Monthly Update - Spring 2009

May 2009 

Have we finally turned the corner this month? The numbers would say so. We saw the first positive improvement in the Central Toronto market since December 2007. And not just a minor increase either - we were up a whopping 12% vs. May 2008. No small increase. Prices are still catching up at -4%, but again an improvement over the numbers we have seen in the last 8 months. And with sales up 12%, prices will likely follow in the coming months. Days on the market also continued to improve, at 31 days vs. 33 in April, 39 in March and 43 in February.

What is driving this resurgence in the market? A combination of low interest rates, eager first time buyers and pent up demand from a very slow Fall/Winter. Great news sellers - bidding wars are back.

March 2009

This month in Central Toronto real estate, home sales were down -7% while average prices were down -5% to $455,899. Average days on the market for central Toronto real estate went up to 39 days (up 70%) and the average sold price as a percent of list went from 100% to 96%.

Is this a turn-around we are seeing?  If you compare our -7% decline in sales vs. March 2008, it is a significant improvement vs. what we have seen over the last several months in Toronto. November, December and January saw sales of -59%, -55% and -52% respectively. Prices have also declined significantly less this month, at -5% vs. previous months where our best case scenario was a -8% decline.

With interest rates at all time lows and a market showing the very early signs of recovery, buyers beware - the glory days may just be numbered.