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Toronto Real Estate: Ouch
Sales down 50%, Average Price down 8%, Inventory up 36%.
Real estate agents in the Greater Toronto Area recorded 1,991 resale transactions during the first half of November 2008 down from the 3,544 sales recorded during the same period a year ago, Toronto Real Estate Board President Maureen O’Neill announced today.
The Greater Toronto Area year-to-date figures show 70,474 sales in 2008 from 84,994 recorded during the same period in 2007. The year-to-date average price was recorded at $380,470 in 2008 from $374,678 in 2007.
In the 416 area, 830 homes changed hands in the first two weeks of November from 1,643 transactions recorded during the same time frame a year ago. The year-to-date figures show 28,126 compared to 35,045 recorded in 2007. In the 905 Region there were 1,161 sales during the first half of the month from the 1,901 transactions recorded at mid-November 2007. The year-to-date figures show 42,348 compared to 49,949 recorded in 2007.
‘It’s particularly important to interpret the 416 area statistics in context given the market surge we saw a year ago when buyers moved to avoid the new Toronto Land Transfer Tax,” said Ms. O’Neill. “At midmonth a year ago, transactions in the 416 area had increased 24 per cent over the same period in 2006.”
In the first two weeks of November 2008, the average price of a home in the GTA was $375,712 compared to $393,084 recorded a year ago.
In the 416 area, homes are currently selling for an average of $400,305 from the $432,972 average recorded during the same time period in 2007. An average price of $383,029 was recorded in the first two weeks of November 2006.
In the 905 Region the average price is currently $358,130 from $358,610 recorded a year ago. During the first half of November 2006 the average price was recorded at $336,576.
“As an investment, a home not only offers shelter and an environment in which life’s most important moments are shared, but also offers financial appreciation in the long term, said Ms. O’Neill.”
Currently there are 27,562 homes listed for sale on the TorontoMLS system compared to a year ago when 20,173 properties were available. As such, the average time homes are remaining on the market is 41 days from 31 days in 2007. Sellers are currently achieving 97 per cent of their list price.
November 19, 2008 in Toronto Real Estate Update | Permalink
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Comments
the problem that no one is seeing is that housing prices went up not because incomes got better but because credit was being extended beyond its normal means. of course there are people who make good money but on average people are making 40-60,000 per year. canadian banks did not go as far as americans but people have maxed out their credit and one little change puts them on the streets. no one seems to understand that is will not be a recession but a depression in the US because the amount of debt will be too much for the country to bear. After subprime loans, the next wave of loans (alta-1 and ARM's) are coming due which will default at the same rate if not more than subprime. The US is tied to canada in jobs. Many canadian businesses sell to the US so with our downturn, canada will take a big hit, not as bad as US because of our trillion dollar debt, but it will get bad. canadians and americans are up to their ears in debt so this is what i refer to as fake economy based on debt not real money. Just like the american feds, just printing money with nothing to back it. be prepared!!!
Posted by: patricia | Dec 16, 2008 5:54:52 PM
The market will bounce back, it may take a few years but it always does come back. In the interim, it's a great market for first time buyers and people hoping to upgrade.
Finding you a great rate no matter where you are in Ontario.....your "Online Mortgage Broker".
Kimberly
www.mortgageintelligence.ca/kimberlylefebvre
Posted by: Kimberly | Dec 3, 2008 11:28:10 AM
Hey Sev,
You sure can make a short story long!
It sounds like you're saying downswings in real estate and the financial market don't matter because in the long term everything rises.
Okay, cool.
Unfortunately we don't have the luxury of living to be 174 years old with a 152 years of prime employment.
What do we do now Sev?
Today, if I need to sell a property what should I do?
Today, if I need cash do I sell my stocks or wait?
Posted by: dontcallmeshirley | Nov 27, 2008 2:34:38 PM
I recently came across your blog and have been reading along. I thought I would leave my first comment. I don't know what to say except that I have enjoyed reading. Nice blog. I will keep visiting this blog very often.
Sharon
Posted by: Sharon | Nov 27, 2008 2:30:42 AM
Toronto's housing market is certainly not in the great shape it was this time last year. However, it would be absurd to think that our real estate market will crash. Did anyone actually expect the real estate market to improve from last year's RECORD HIGH???? Let's be realistic...what goes up, eventually comes down, but in the mean time another notch is registered on the belt, and therefore that notch achieved due to the record high prices of 2007 allow for the market to establish a new potential for real estate prices and in the longer run contributes to increasing the average prices of homes during every stage of the typical real estate cycle....this has been happening for years and will be happening for years to come....the fundamental problems we as Torontonians and more importantly as Canadians face is the overwhelming conformity to behave recklessly.
The reckless consumer behaviour I speak of the drop in consumer spending, and ultimately the drop in consumer confidence. Why, you ask? Gee..could anyone marvel as to why we as consumers tend to lose our confidence? Could it have anything to do with the financial crisis, the global recession, the sudden realization that all is not so swell...in reality, the real estate market is shifting...In 2007, Toronto was in a seller's market burdened by multiple offers, whereas now, it is progressing towards a buyer's market burdened with listings that don’t sell...Why people panic and rush to assume that the real estate bubble has burst and will never be the same, I will never comprehend. The market will eventually rebound, and so will consumer confidence. The financial world may be under renovation at the moment, but it too shall be rebuilt and it too shall overcome. Clearly real estate prices fluctuate based on market supply and demand forces...An increase in the supply of homes (new developments) coupled with an immediate drop in demand (due to a drop in consumer confidence and new difficulties in obtaining financing) does result in downward pressure on the price of property in any real estate market. However, time and absorption rates are positively correlated, and eventually the supply of real estate in desirable areas will diminish, whereas the demand for it will also increase. Why? Simple demographics...as Toronto's population grows, so too will the demand for housing, thereby increasing the value of property across the city. So don’t you worry, don’t you fear…the desire to Live Downtown will still be here!
Posted by: Sev Tozcu | Nov 27, 2008 12:48:37 AM
thats why a lot of agents and realtors are feeling the same ouch
Posted by: toronto lofts | Nov 26, 2008 4:34:43 AM
Nice info about the toronto condos survey... Nowadays, toronto condos are being sold for a nice rate. There is a good luck for these condos.
Posted by: Toronto condos | Nov 23, 2008 7:38:08 AM
Long term investment... Just like stocks- 13 years low on S&P 500. I wonder how many people have such long term perspective to live. I Predict total collapse of RE market in Toronto. Only best properties have chance- the rest will be turn to public housing , abandoned or bulldozed due to unsafe conditions. I mean not occupied properties and foreclosed ones.
Posted by: goblin | Nov 21, 2008 10:34:56 PM
Well we can not be THAT sure can we? who knows what will happen in future? we might be all surprised! I don't have any kind of information here that you guys don't and i know this is what we're facing now but who knows...?
http://www.knock-knock.ca
Posted by: Nikki | Nov 21, 2008 4:15:06 PM
Well we can not be THAT sure can we? who knows what will happen in future? we might be all surprised! I don't have any kind of information here that you guys don't and i know this is what we're facing now but who knows...?
http://www.knock-knock.ca
Posted by: Nikki | Nov 21, 2008 4:14:50 PM
This is just a start. Once deflation takes hold of the real estate buyers will disappear (fear will take hold). I wonder how much speculations is in the Toronto Market.
JDallas, This housing crisis is a global phenomena. Prices apprications since 2003 has been going on across the globe and this will put a lot of people in negative equity.
The only way to get out of this housing crisis is hyperinflation.
Posted by: Investor | Nov 20, 2008 11:24:17 PM
Well...I'm still waiting for bargain...It's on the way.Next year, the average price of the houses in Toronto will be way less than 2006.I'm a first time buyer, so, I'm not in rush!
Posted by: Zoltan Petroczki | Nov 20, 2008 5:27:00 PM
Darn.. Canada hot with the whole crisis as well, wonder if there are any talks of the government bailing them out?
Thanks for the post...
Posted by: myrtle beach real estate | Nov 19, 2008 3:07:40 PM
Toronto's real estate market is a bit of the canary in the coal mine for the rest of Canada. It's hard to look at the West as a good barometer of Canada real estate trends since "cooling off" in markets like Calgary and Edmonton really means an easing of sky-high appreciations in values. There's a lot of uncertainty out there and I think the Toronto real estate resale statistics are reflecting that mood.
Posted by: Canada Real Estate Blog | Nov 19, 2008 2:14:51 PM
Ms. O’Neill should be arrested for these lies. I wonder how many lives she's destroyed with her greed.
Posted by: David M | Nov 19, 2008 1:27:19 PM
Wow, I had no idea that Canada was affected by the housing crisis too. But I gues with all the cross-border activity it would be.
Posted by: JDallas | Nov 19, 2008 12:45:17 PM
