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Toronto home sales down 23% in June
Average selling price up 8% over last year.
Greater Toronto Realtors reported 8,442 sales through the Multiple Listing Service® (MLS®) in June. This represented a 23 per cent decrease compared to the record 10,955 sales reported in June 2009. Sales for the second quarter of 2010 amounted to 28,810 – up one per cent annually. Year-to-date sales through June were up 23 per cent to 50,455 compared to the first six months of 2009.
"We experienced a record number of existing home sales during the first half of 2010, but these sales were weighted more towards the beginning of the year," said Toronto Real Estate Board President Bill Johnston. "The pace of home sales has moderated from record levels over the past two months with the prospect of higher mortgage rates."
The average price for June transactions was $435,034 – up eight per cent compared to the average of $403,972 recorded for June 2009.
"With more homes to choose from in the second quarter, many home buyers have been making less-aggressive offers. This has resulted in less upward pressure on the average selling price," said Jason Mercer, TREB's Senior Manager of Market Analysis. "The annual rate of average price growth in the second half of 2010 will be in the single digits."
Median Price
In June, the median price was $367,750, from the $345,000 recorded during June of 2009.
See the Toronto Real Estate Market Watch report »
July 6, 2010 in Toronto Real Estate Board | Permalink
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Comments
Excellent real estate blog.It was pleasant to me.I am confident that the fall will bring increased sales again in the Toronto area.If you are seeing lower sales volume and building inventory of unsold homes then this could result in price declines.
Posted by: Table Linens | Dec 31, 2010 3:54:50 AM
The HST has definitely had an effect on the market. But as summer vacations come to an end, and people settle in for the school year, I think we are going to see things fstart moving again.
Posted by: Dino | Sep 2, 2010 11:03:37 AM
While experts disagree over the size of the market 'correction', or the length of any downturn in the market that is likely to take place over the next few months or even years, there is little doubt that more people will be in a position where they feel under pressure to sell their property as quickly as they can. The danger is that in putting your property up for sale you will be tempted into taking a much lower offer than you should, as well as the stress of dealing with demanding buyers.
Posted by: GreenlightProperties | Aug 29, 2010 12:15:45 AM
HST was a killer, and we've seen a similar slowdown in London... Will be interesting to see what the spring brings in 2011...
Posted by: London Homes | Aug 16, 2010 10:08:36 PM
Such a period can give a good opportunity for sellers to set a suitable price while the buyers have enough time to make the research, home inspection etc. The market seems to be more balance until the rest of the year so the buyers should not be discouraged if they want to make a deal.
Posted by: Elli D. | Aug 4, 2010 9:55:12 PM
There has been a slow down, after the spring, when there was so much movement. I am confident that the fall will bring increased sales again in the Toronto area.
Posted by: Dino | Jul 23, 2010 8:47:15 AM
The Calgary real estate market is much the same as listings are up dramatically and sales are down equally as dramatically. As a Calgary Realtor I must take the positives out of the market as it is a great opportunity for new home buyers.
Posted by: Brent Lane | Jul 22, 2010 2:57:43 PM
Nice to see the comments from other perspectives. The market HAS come to a standstill and the prices for those still on the market are/or need to drop. I am an honest Realtor in Durham and I have been telling my buyers to wait a month or two to buy (fall market). The prices will have stabilized by then due to mortgage rates,HST,and previous frenzy in the spring market.
People that want to sell should also realize that the prices are down ,albeit to where they should be now! Sellers have missed the highest prices and still should be satisfied with the market compared to previous years. Houses will still sell if priced reasonable and marketed properly.
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Posted by: Pol | Jul 14, 2010 9:01:13 AM
@ Bill - what's the mls # of your buddy's property?
Posted by: Geoff | Jul 14, 2010 9:00:17 AM
The slow market is starting to get to people as many are seeing their chance to sell out and cash in on the RE bubble before it pops maybe to late for some. A buddy of mine has tried to sell for about three months now and only in the past six weeks have they reduced their price but it seems to late. They have been dropping it 25K every two weeks for a total of 75k in six weeks with no buyers. Buddy is in financial trouble and really never should of been given a mortgage but was able to get one with the mortgage guy "playing" with the numbers. You hear of many stories of mortgage "specialists" who manipulate the numbers to qualify people who should never have gotten a mortgage. I think many people who fail to sale soon may have to go bankrupt. The housing crash looks like it will be a bad one.
Posted by: bill | Jul 13, 2010 8:54:24 PM
The slow market is starting to get to people as many are seeing their chance to sell out and cash in on the RE bubble before it pops maybe to late for some. A buddy of mine has tried to sell for about three months now and only in the past six weeks have they reduced their price but it seems to late. They have been dropping it 25K every two weeks for a total of 75k in six weeks with no buyers. Buddy is in financial trouble and really never should of been given a mortgage but was able to get one with the mortgage guy "playing" with the numbers. You hear of many stories of mortgage "specialists" who manipulate the numbers to qualify people who should never have gotten a mortgage. I think many people who fail to sale soon may have to go bankrupt. The housing crash looks like it will be a bad one.
Posted by: bill | Jul 13, 2010 8:54:24 PM
This is an excellent blog and certainly worthy to be checked out frequently. It would be cool if you checked out mine and gave me some hints.
Posted by: Menno van Driel | Jul 12, 2010 10:02:37 PM
@ Dom - I don't know how many times or in how many languages I have to say it, but I'm not a realtor. I find it funny though that you assume I am, because I don't throw out words like crash every 10 words.
Ask Chris L, I've been thinking there's got to be a correction of maybe 10% any day now for 2 years now. All I'm saying is that I'm not going to take one month's activity and project it out for the next 5 years, I want some more time/evidence before I see a trend. And the other thing I'm saying is that if you have evidence to support your view, you should include the mls #, street address, city, or whatever you're referring to. It's shocking that you find request so offensive.
Posted by: Geoff | Jul 12, 2010 8:57:13 AM
Oh oh looks like some people have pissed off some realtors with vested interest. Sorry realtors the housing crash is getting worse and to blame the g20 , WC and good weather is a joke. Talk to any honest realtor or mortgage broker in the biz and they will tell you the market has stalled with listing increases everyday and little sales taking place. In fact a couple realtor buddies of mine have sold their flips a few months ago and laughed at the "suckers" who bought it from them. They were happy to "cash out" of the housing bubble. Those were the words they used "suckers" and "cash out". The smart money is gone and the foolish remain.
Posted by: dom | Jul 11, 2010 11:03:06 PM
The article states two factors that indicate some market stability: slightly rising prices, and recent decreasing sales volume. If listing volume and days on market are not increasing at the same time you could be in a stabilizing time period.
We saw this in Northern Virginia. We have low inventory compared to last year, increased prices, and slower sales. So if that is what you are seeing you have a good trend line.
If you are seeing lower sales volume and building inventory of unsold homes then this could result in price declines.
When homes don't sell it is usually because of one of three factors: excessive inventory, over priced listing, or a property that does not show as well as the competition.
When a home does not sell you have to evaluate your property relative to the competition.
Condition: Preview homes with your listing agent to determine if your home really is priced to sell. If your home is not staged to sell to bring out the best in your home then stage it.
Price: If your home is priced the same as other homes nearby and your home is not selling re-evaluate your price relative to the competition. Being the lowest priced home does not guarantee a buyer will pick your home over higher priced homes if those other homes show better or have more preferred upgrades.
Inventory: You can't control this, but you can control whether or not your listing grows stale in a large inventory of homes. Get it right on day one of the listing. Make sure the home is ready for the market you are in. Eliminate all objections buyers might have to the condition or appearance of the home. Think of this like your home is going for a job interview for a next owner. You would always dress up for a job interview, so dress your home up for sale to have better odds of being picked by a motivated buyer.
Regards,
Alan
Posted by: Alan Kroll | Jul 10, 2010 5:47:14 PM
@ Chris - it seems a bit early to say that lower prices are here to stay. June isn't the best month anyway + now add worldcup, good weather and g20s and I'm not surprised things are slow. Look at Guava, we're not at record highs of listings either in TO.
@ Dan & Prem - please stop posting stories that lack any identifying facts. Dan, what's the address of the condo you can't sell at any price ($100, really won't move it) and Prem, what area of Canada are you in and what planet are you from that makes you think you can walk away from all your debts. Bankruptcy doesn't discharge everything.
Posted by: Geoff+ | Jul 10, 2010 10:30:16 AM
hmmm very interesting.
Posted by: travis | Jul 10, 2010 12:42:54 AM
Hey Geoff! Ready for price reductions finally?
Posted by: Chris L. | Jul 9, 2010 8:27:12 PM
Hey Geoff! Ready for price reductions finally?
Posted by: Chris L. | Jul 9, 2010 8:27:12 PM
Hey Geoff! Ready for price reductions finally?
Posted by: Chris L. | Jul 9, 2010 8:27:11 PM
Nothing is moving in my area and the fear is growing that if I can not sell soon I might have to file for bankruptcy. It's making me sick to read these articals which are nothing but lies as the reality on the ground is much different. Worse comes to worse I will leave Canada and walk away from all my debts. Realtors are true scum and so are mortgage brokers.
Posted by: prem | Jul 9, 2010 5:28:52 PM
Beware of price increases without significant increase in sales... it is similar to stock price rising without a rise in volume of stock traded...
i have posted plenty of charts on Canada's housing market... Canada's house prices have been setting record highs in 2010 - the only developed country to do so!
Posted by: takloo | Jul 8, 2010 1:36:27 PM
Excellent real estate blog. It was pleasant to me. Thanks for this.
Posted by: Mayfield Condo | Jul 8, 2010 2:38:13 AM
@ Dan - what's the mls listing and address of your condo?
Posted by: Geoff | Jul 7, 2010 9:15:45 AM
