By Val Logaridis
Feeling confused by everything you are hearing about the Housing Market in Toronto? Volume dropped by 23% in September!…. Sales are down!…. Prices are up!…. I would be confused too!… if I didn’t have all the facts. So here are a few tidbits that hopefully will clarify current market conditions for you.
During the first few months of 2010 certain factors converged to create “the Perfect Storm” in Toronto Real Estate. The three most notable were as follows:
1) The impending implementation of HST
2) The fear of mortgage rate hikes and
3) More stringent mortgage qualification rules
The fear created by these three factors ensued in a buying frenzy that reached almost that resulted in most Toronto Realtors enjoying a VERY good year before we had reached the mid point of 2010!
By the beginning of the summer the inventory of residential properties listed for sale on the Toronto Real Estate Board was at its lowest level since 2002. The frantic pace at which homes had been selling could not realistically be maintained. As there was not a lot of choice, it is not surprising that we have experienced lower sales volumes on a monthly basis, as compared to the same months in 2009.
As a result of the low inventory for past few months, many prospective buyers were forced into rental situations ensuing in multiple offer situations for rental properties.
Despite all of this, by the end of the first nine months of 2010 sales were still up 4% as compared to the first 3 quarters of 2009 and the average price in September was up 5 %, compared to the average price in September 2009
We remain on track for one of the best years in history!
Val Logaridis is a Sales Representative with Royal LePage R.E.S. Ltd, Johnston & Daniel Division. Val is a regular blogger with Muddy York.