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Toronto sales down - average price up
GTA Realtors Report On September Resale Housing Market
Greater Toronto Realtors reported 6,310 sales through the Multiple Listing Service® (MLS®) in September 2010. This represented a 23% decrease compared to the 8,196 sales recorded during the same period in 2009. Through the first nine months of the year, sales amounted to 69,069 – up 4% compared to the first three quarters of 2009.
“The level of sales in the second half of 2010 has been lower, representing a balancing out period following record levels of sales in the latter half of 2009 and first few months of 2010. We remain on track for one of the best years in history for existing home transactions in the GTA,” said Toronto Real Estate Board President Bill Johnston.
The average price for September transactions was $427,329– up five per cent compared to the average of $406,877 reported in September 2009. The average selling price through the first nine months of the year was $429,657. “Resale homes in the GTA remain affordable,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.
“It is important to consider the positive impact of declining mortgage rates over the past two decades. Simply considering home prices relative to incomes does not allow for an accurate analysis of affordability,” continued Mercer. “The share of average household income going toward a mortgage payment on the average priced home in the GTA remains within accepted lending guidelines. This is why the average home selling price has continued to grow.”
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October 5, 2010 in Toronto Real Estate Board | Permalink
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Comments
Alpine is a convergence situated in the eastern province of San Diego Constituency surrounded by the disorder of California.
Posted by: Sell My House Quickly | Oct 20, 2010 1:23:19 PM
Wow , look at all the realtors here blowing sunshine. The fact is sales are down as well as prices. I've seen my area fall in price by $40,000 since May. In the C6 area (good area) $600,000 homes can be bought now for $500,000. The media continue to lie for realtors who manipulate stats. I wish the RE market was hot. Been trying to sell to anyone who is stupid enough to buy.
Posted by: Larry | Oct 19, 2010 3:13:09 PM
Durjab,
So your premise is that immigrants come with boat load of money. Why would they be immigrating in the first place?
Posted by: Behavioral Finance | Oct 18, 2010 9:54:17 PM
LOL, oh boy, that's quite a little 'debate' going on. Nevertheless, prices going up can be a reflection of less distressed properties on the market. How is financing in Canada right now?
Posted by: Alex Cortez | Oct 18, 2010 12:05:37 AM
I don't know from where your information collected.
But the good area continue to grow because of real state rule: "location,location,location".
Immigration continue to come to canada 250 000 each year - so there is no reason for prices down.Like on year 2000 people say prices to high - they stay on rent and houses prices grow almost 100% since then.
so to buy or sell house is a big decision...
Posted by: Durjab | Oct 16, 2010 12:54:32 AM
@ Larry - I'm not a realtor. I know you can't believe that a homeowner doesn't hate the world of real estate like you do, but I'm not. Your anger is misplaced and hateful, but hey you get what you give in this world so good luck with that. You also missed a chacne to advertise your home for sale for free, well done.
For those outside of Toronto, 400/401 area is not a nice area of town, very close to sheppard/keele, and there's a lot of crime and apparently not nice people like larry here. From http://www.torontolife.com/guide/real-estate/west/downsview-roding/
Property crime: very high
Crime against people: very high
Posted by: Geoff | Oct 15, 2010 9:28:46 AM
Who are you geoff? Some type of scumbag realtor? I hate realtors like you and builders as well. The builder has not only lower the selling price but is now offering $36,000 cash back. The market is real bad. My townhome is at 400/401. Since you realtors (geoff) are so smart figure it out. I hope you realtors go bankrupt for your lies and sins.
Posted by: larry | Oct 14, 2010 11:12:28 AM
@ Larry - what's the address and mls # of your house? (I asked George the same question about his house story and he never answered, but I know you're an honourable person and can tell us).
Posted by: Geoff | Oct 14, 2010 9:28:03 AM
Been trying to sell my home for the past few months with no luck. My town house is the lowest priced( by $21,000 lower) in the area and even bigger then the second lowest priced town home. Not one of the town houses has sold and we have lower prices by at least $50,000 since april-may. Yes we all know sales are down but come on we have lowered our prices alot. I won't even break even now. realtors are true scum of the world.
Posted by: larry | Oct 13, 2010 10:26:01 AM
Nova Scotia is seeing a downturn of our own. Third quarter is off 8% from a Year ago. We were down 30%
from the year before that!
The prices overall are up across the board.I guess we will survive. I blame the bank tightening - we have a great deal of first time buyers that are recovering from the bank rules change.
Posted by: Paul Viau - Novascotianhomes | Oct 11, 2010 3:27:24 PM
@ George - what street was your uncle's house on? MLS Listing #
Posted by: Geoff | Oct 8, 2010 9:18:31 AM
My uncle finally sold his home in a selling war? Sellings wars coming to Toronto? Uncle and a few other sellers in the area had to out lower their home price inorder to sell. The buyers demanded a lower selling price or else they would buy the other house just down the street. Uncle claims the realtor told them to lower or else the buyer would go down the street. Lucky for him he out lowered his home and sold it. This housing crash is getting interesting. I heard about it last month from a co-worker but never thought much about it. These selling wars must be happening all over the GTA. I guess realtors don't want you to know about it.
Posted by: george@hotmail.com | Oct 7, 2010 10:53:06 PM
The RE industry can spin and spin but the fact is sales have been down over 20%+ for the past FIVE MONTHS. We have sales which are down and prices which are down. What realtors hate to explain is that you can get a $500,000 home for $425000. You see every home has different finishes (new wood floors, new roof EtC.). The problem is Homes that were dumps sold for $425K and the fixed up houses were $500K. Now the crappy houses do not sell and the once $500 homes are now selling for the $425K. The LAWS of SUPPLY and DEMAND can not be spun. With sales down 20%+ for the past five months you get lower and lower prices.
Posted by: Pete | Oct 6, 2010 11:10:04 AM
“It is important to consider the positive impact of declining mortgage rates over the past two decades. Simply considering home prices relative to incomes does not allow for an accurate analysis of affordability,” continued Mercer. “The share of average household income going toward a mortgage payment on the average priced home in the GTA remains within accepted lending guidelines. This is why the average home selling price has continued to grow.”
I just love the justification for current prices. I guess he forgot to mention that people are putting themselves in much higher debt levels compared to their incomes and increasing their amortization periods. Also don't forget that interest rates are unlikely to go lower and with the risk of mortgages being VRMs, increasing interest rates can have profound effect on household budgets.
Posted by: Finance | Oct 5, 2010 10:38:35 PM
Pete, I'm surprised you haven't updated your usual posting yet with the sept data from guava.ca so I will:
From the TREB website…
avg house prices in TO in May: $446,593
avg hosue prices in TO in August: $411,012
{new: average house price in TO in Sept: $427,329}
DECLINE of 35,581 or 8% in FOUR MONTHS!
{new: DECLINE of $19,264 or 4% in FIVE MONTHS!}
{new: Another way to put it - if you bought in August, you made 4% in ONE MONTH!} {not really but making a point}
New: Now I still think that overall by july 2011 market prices will be about 20% below average july 2010 prices but I'm hoping you or at least others will see that taking data points in isolation isn't the same as forming a trend using wholistic data.
{cue 'you're a realtor (i'm not) and 'you can't do math (I can) speech}
------------------------------------------------
{rest of original pete posting follows}With sales crashing and now prices are following it is now obvious that the housing market will drop for years to come. Realtors will kick and scream and lie since they ONLY make money if they sell.
Posted by: Geoff | Oct 5, 2010 4:33:17 PM
