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Toronto Home Sales Drop 37%
GTA Realtors Report Mid-Month Resale Housing Figures
Greater Toronto Realtors reported 2,790 sales through the Multiple Listing Service® (MLS®) during the first two weeks of July 2010. This represented a 37 per cent decrease compared to the 4,437 sales recorded during the same period in 2009. New listings decreased by eight per cent annually to 5,184.
“Last summer existing home sales spiked well above the expected long-term trend. Sales were also unseasonably high during the first four months of this year,” said Toronto Real Estate Board President Bill Johnston. “Transactions will be down yearover- year in the second half of 2010 as the level of sales balances out.”
“With year-to-date sales up by more than 18 per cent compared to last year, we continue to look forward to one of the best years on record under the current TREB trading area,” continued Johnston.
The average price for July mid-month transactions was $427,931 – up eight per cent compared to the average of $394,750 recorded during the first 14 days of July 2009.
“The average home selling price in the GTA will continue to grow on an annual basis in the second half,” said Jason Mercer, TREB’s Senior Manager of Market Analysis. “Even with the pace of transactions slowing, there will be enough sales relative to listings to support sustainable rates of price growth.”
Source: Toronto Real Estate Board
July 19, 2010 in Toronto Real Estate Update | Permalink
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Property owners have the option of requesting a notice of assessed value for their property annually. Section 25.19g of the Texas Property Tax Code provides the owner the option to request a written notice of the assessed value from the chief appraiser. Owners benefit from requesting and receiving a written notice of assessed value for each property because it ensures they have an opportunity to review the assessed value. This notice should be sent on an annual basis. The appraisal district does not have to send a notice of assessed value if the value increases by less than $1,000. However, if an owner was not satisfied with a prior year's value and the value remained the same, the appraisal district probably will not send a notice of the assessed value for the current year. In this situation, the owner might forget to protest since a notice of assessed value for the property was not received.
Posted by: GreenlightProperties | Aug 29, 2010 12:14:39 AM
A 37% decrease in home sales is a huge drop. Im definitely interested in seeing how the market will figure in 2011. Its sad to see Toronto in that type of market decline.
Posted by: Foreclosures | Aug 11, 2010 3:39:15 PM
Global Real Estate Appreciation Party appears to be over. Time to pack up.
Posted by: Finance | Aug 5, 2010 12:26:16 AM
Many states are already experiencing the same situation. With the trend being in shown in real estate sales data, it is most likely to last longer than expected.
Posted by: Real Estate Investing Help | Jul 29, 2010 10:12:59 PM
Hi
An amazing information in this post about property of Toronto house.
Posted by: Properties Prices in Pakistan | Jul 28, 2010 10:14:18 AM
@Gary is right... no need to speculate, we are in a perfect storm!
Posted by: Pablo Edwards | Jul 26, 2010 6:49:58 PM
Consensus seems to be in: it's just a matter of how far, how fast the price slide will be, Q4/10 - Q1/13. Even those future Sellers who are move-up buyers stand to see significant valuation adjustment in their favour, if they can hold off 12 months or more. Why catch a falling knife?
PS- this is the ONLY GTA blog that doesn't screen out the truth as a Venus Fly-Trap of RE Porn for the truly brain-dead (or Chinese and Iranian "investors"). This blog therefore gets some respect back from the silent majority just trying to time the inevitable 'cooling'. TREB and CREA are now complete joke items for Canadians(especially the defenceless and clueless Gregory Klump, a perfectly-named CREA "economist" who never fails to entertain with his Clouseau impersonation).
Posted by: jack | Jul 23, 2010 12:23:38 AM
@ Marz - why exactly will HST affect resale markets like Toronto? There aren't a lot of new houses being sold in Toronto (defined by the streets that the TTC serves without additonal fare, so not including futureslums like Oshawa or Milton). I guess the transaction costs will be up a bit but I'm not sure what else will be.
Posted by: Geoff | Jul 21, 2010 10:20:10 AM
The peak of the US housing bubble was 5.2 income to price ratio and in Toronto it's 5.7 times income and in Vancover it's 7 times income. The housing crash in Canada will be worse. It's not different here only worse. Beware of realtors with vested interest on here. In june sales fell hard which was just before the HST. This is very alarming and telling just how bad the crash is going to be. Many realtor are worried about the drop in sales since they ONLY make money if they sell.
Posted by: Dave | Jul 20, 2010 1:47:10 PM
I'm with kelly. It's seems we have the biggest credit/housing bubble Canada/Canadians have ever seen. I know of two couples who tried to qualify in 2005 with no luck. They tried their luck again with a mortgage broker in 2009 who was known to pay with the number and guess what they qualified for a home they can not afford. Now they are both trying to sell it before they go bust. I can only imagine how big of a credit/housing ponzi we have in Canada. Look out below cause it's going to be a really bad crash.
Posted by: Dave | Jul 20, 2010 1:42:15 PM
@Marz - 35-45% drop is very unlikely. Toronto house prices have had the strongest rebound (18% from trough-to-peak) since they tanked last year...however they also experienced slowest growth to the prior peak in 2008...
I just posted comparables of various Canadian cities...
and a lot more housing and mortgage charts on my blog...
You can view the chart of the rise in US prices vs Canada and it will be clear why we are not going down 35%... US prices went parabolic
Posted by: takloo | Jul 20, 2010 12:25:30 PM
There's no need to speculate. Here are the reasons:
-Record levels of debt
-Panicked buyers getting in before April-June 2010 to beat mortgage rules, HST, rate hikes
-Deflated consumer confidence
-Hiked insurance premiums
-Tightening credit
-Stagnant or reduced income
-Persistently high unemployment
-Stimulus spending waning
-Looks of a global double dip reccesion from austerity measures
The average Canadian consumer is tapped out and a lot of demand from the next two years had been pulled into 2009 and early 2010. Frenzied bidding and borrowing has created a price bubble which is only beginning to correct. Anyone with excess real estate exposure and looking to retire soon should reassess. This slide might last as long as the 1990's bust.
Posted by: Gary | Jul 20, 2010 11:25:45 AM
There's no need to speculate. Here are the reasons:
-Record levels of debt
-Panicked buyers getting in before April-June 2010 to beat mortgage rules, HST, rate hikes
-Deflated consumer confidence
-Hiked insurance premiums
-Tightening credit
-Stagnant or reduced income
-Persistently high unemployment
-Stimulus spending waning
-Looks of a global double dip reccesion from austerity measures
The average Canadian consumer is tapped out and a lot of demand from the next two years had been pulled into 2009 and early 2010. Frenzied bidding and borrowing has created a price bubble which is only beginning to correct. Anyone with excess real estate exposure and looking to retire soon should reassess. This slide might last as long as the 1990's bust.
Posted by: Gary | Jul 20, 2010 11:25:45 AM
kelly -- i'm interested in speaking with the bearish real estate broker. could you have him contact me? 646.312.8894. thanks.
Posted by: david | Jul 20, 2010 10:39:10 AM
A 35-45% drop over the next 2-3 years? I find that highly unlikely. I'm waiting for a drop too, but I'd be much more conservative in my expectations if I were you.
Oversupply could be one reason. Another is common in both Toronto and Vancouver - the HST. At least that's my assumption.
Posted by: Marz | Jul 20, 2010 9:08:50 AM
After talking to a honest realtor in private a few days ago I am not surprised by the 37% drop in sales. In fact I was shooked that it was only 37% drop. The realtor said the market was bad and only going to get worse. He told not to throw my money away and buy when prices fall between 35-45% in the next 2-3 years. I took his card and will wait for a couple of years. An honest realtor is hard to find. This guy is thinking of the future and I will buy a home in 2-3 years when prices are almost 50% off.
Posted by: Kelly | Jul 19, 2010 8:08:13 PM
Any speculation as to the cause of this sudden drop? Are the reasons similar to that of Vancouver's sudden decline -- oversupply?
Posted by: Golden City Rentals | Jul 19, 2010 7:27:30 PM
