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.
The average price of an existing home is also up 10% to $406,877 compared to the average price in 2008 being $368,549.
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.
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.
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
