Existing home sales in the Toronto area show a 28% increase in September compared to the year before, according to the figures released on Monday, by the Toronto Real Estate Board (TREB).
TREB notes that 8,196 homes have traded hands during the month.
As you can see in the graph above, it was a slow start at the begining of the year, however once th emarket picked up sales began to outshine 2008’s. With the current trend we have been seing since May, we can expect the months of October, November and December of 2009 to have a similar increase.
The average price of an existing home is also up 10% to $406,877 compared to the average price in 2008 being $368,549.
The graph above shows that since June, the housing market in 2009 has done better compared to the year before. This trend has continued ever since then, going into the month of September as well.
A reason for this is the shortage of listings. Active listings are down significantly in September; it is down 42% to 15,894, according to TREB.
The graph above portrays a comparison of active listings from 2008 – 2009. As you can see there is an large decrease in active listings.
This means that buyers have been competing for fewer products on the market, leading to bidding wars in some neighbourhoods, while pushing the prices upward.
With less listings, there is more competition on the market for what is available. This means that chances are a good home will be sold quickly and at the price the seller wants.
A recent survey of consumer confidence showed that consumers are now more likely to make larger purchases, compared to 6 months ago. This is showed in the sales the past few months as sales have been at an all time high compared to 2008.
If you take a look back to the active listings graph, you will see there were more listings until April, which is the point people needed to sell their homes or face bankruptcy. The economy has improved, and so has consumer’s financial situation.
An average home is now on the market for 27 days, compared to 36 days last year.
Another reason this is happening is due to the historically low interest rates, where one can find a five year fixed rate mortgage for less than 4%.
Surpassing 2008 in terms of sales will get accomplished from the trend we are seeing now.
Year to date sales are up 4.5% in the first nine months of 2009, compared to the same period last year.
We might be seeing the markets cool in 2010; further stabilizing alongside the economy.
With the low interest rates, buyers are purchasing homes now rather than waiting for the next year, as these rates might not be around much longer. With consumer confidence growing, it is very likely that sales will surpass 2008 and we might see this year move along some of the best years on record under the current TREB market area.
Nelson Goulart
Broker of Records with Signature Service GMAC Real Estate
www.ssgmac.ca
The graph above portrays a comparison of active listings from 2008 – 2009. As you can see there is an large decrease in active listings.
This means that buyers have been competing for fewer products on the market, leading to bidding wars in some neighbourhoods, while pushing the prices upward.
With less listings, there is more competition on the market for what is available. This means that chances are a good home will be sold quickly and at the price the seller wants.
A recent survey of consumer confidence showed that consumers are now more likely to make larger purchases, compared to 6 months ago. This is showed in the sales the past few months as sales have been at an all time high compared to 2008.
If you take a look back to the active listings graph, you will see there were more listings until April, which is the point people needed to sell their homes or face bankruptcy. The economy has improved, and so has consumer’s financial situation.
An average home is now on the market for 27 days, compared to 36 days last year.
Another reason this is happening is due to the historically low interest rates, where one can find a five year fixed rate mortgage for less than 4%.
Surpassing 2008 in terms of sales will get accomplished from the trend we are seeing now.
Year to date sales are up 4.5% in the first nine months of 2009, compared to the same period last year.
We might be seeing the markets cool in 2010; further stabilizing alongside the economy.
With the low interest rates, buyers are purchasing homes now rather than waiting for the next year, as these rates might not be around much longer. With consumer confidence growing, it is very likely that sales will surpass 2008 and we might see this year move along some of the best years on record under the current TREB market area.
Nelson Goulart
Broker of Records with Signature Service GMAC Real Estate
www.ssgmac.ca
