The real estate markets continue to steam ahead, with the Toronto Real Estate Board keeping a positive view of the future. They report that there have been 3007 homes sold in the fist half of October up from September's first half sales of 2,913 and only slightly lower than October 2005's 3012 home sold in the first half.
In the report they also talk about a few areas that have experienced large increases in sales volume, while leaving it unsaid that if there are several areas with high increases and the over all change is minimal, then there must be some areas that have seen significant reductions in sales volume as well. These fluctuations may just be the signs of normal fluctuations due solely to the number of buyers that have just decided to take the plunge or it could be evidence of a more long term slow down in the Toronto Market.
The biggest concern with all statistics is that they tend to reflect the view that the compiler wants them to promote. Real estate boards always want to promote a healthy market because it makes real estate a more attractive industry, more agents equals more revenue for the board and all, unfortunately this also leads to miss informed sellers and buyers. Sellers that continue to push the price envelope are going to experience longer listing times and a higher rate of expired listings.
Currently, Buyers seem to be becoming more suspect of the statistics and are expecting more for their money. This is creating a rift between what sellers want and what buyers want. If this rift gets too large we could see a larger correction.
I am still hoping that the two groups will adjust their expectations and meet in the middle so that we can continue to experience a healthy real estate market that does not erode from the bottom up.
Here is the mid October market update
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