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Toronto Home Prices Start to Slip

By
Commercial Real Estate Agent with RE/MAX West Realty Inc., Brokerage (Toronto)

Home Prices Moderate in the GTA

 


By Brian Madigan LL.B.

So which way is the market headed this year? That's the question that everyone asks!

Here's the answer from the Toronto Real Estate Board(February 3, 2010):

"Sales Start Off Strong in 2010"


That was the headline and this is the report:

Greater Toronto REALTORS® reported 4,986 transactions through the Multiple Listing Service (MLS®) in January 2010. This result represented a large increase over the 2,670 sales in January 2009 when the home sales were in a recessionary trough.

Last month's sales were slightly higher than the January average in the five years preceding 2009.

The GTA housing market has rebounded well from the lows in sales experienced at the beginning of 2009. Sales climbed back to healthy levels across the GTA because the cost of home ownership remained affordable in the Toronto area," said TREB President Tom Lebour.

Increasingly confident consumers moved to take advantage of affordable home ownership.

The average home selling price in January 2010 climbed 19 per cent to $409,058, compared to 343,632 in the same month last year.

Expect strong annual growth rates for existing home sales and average price through the first quarter as we continue to make comparisons to the weak market conditions at the beginning of 2009," said Jason Mercer, TREB's Senior Manager of Market Analysis. The rate of sales and price growth will be lower in the second half of 2010.


COMMENT

So, which way is the market headed? You just read the story and I bet that you would say "up". However, what if I told you that the average prices over the last three months were:


October...........$423,559
November ......$418,460
December ......$411,931

Then, you would have to say that this is the fourth down month in a row. Statistics can be interesting. And, particularly, the ones you don't want to mention!

Brian Madigan LL.B., Realtor is an author and commentator on real estate matters, Royal LePage Innovators Realty
905-796-8888
www.OntarioRealEstateSource.com

Comments (10)

FN LN
Toronto, ON

TREB always tries to put a positive spin on the statistics.  It's often a good idea to read between the lines to get a better understanding, just like you did.

Feb 03, 2010 01:14 PM
Brian Madigan
RE/MAX West Realty Inc., Brokerage (Toronto) - Toronto, ON
LL.B., Broker

A Toronto Star headline (today) boasts that sales are up 87% in January. Technically, of course, that's true, but is that the whole story?

Feb 03, 2010 10:55 PM
Terry Chenier
Homelife Glenayre Realty - Mission, BC

Brian,

Prices in Vancouver are going the other way. There are stories of places selling for $125K OVER list price.

Feb 04, 2010 01:38 AM
Jo-Anne Smith
Oakville, ON

Brian,

I can see prices stabilizing over the coming months...the lack of listings and the low interest rates were driving prices up. It will be interesting to see a graph of average sold prices 6 months from now.

Jo

Feb 04, 2010 01:54 AM
Michelle Francis
Tim Francis Realty LLC - Atlanta, GA
Realtor, Buckhead Atlanta Homes for Sale & Lease

Brian, 

I love statistics, however, folks can slant them a lot of different ways when they are reporting, so it is also important to understand who is talking about the stats and what is important to them.  We see this a lot in our politics here, both ways.  

Great use of sharing the whole picture.

All the best, Michelle

Feb 04, 2010 04:54 AM
Ty Lacroix
Envelope Real Estate Brokerage Inc - London, ON

Brian

I think the reality is that buyers are realizing that the burden of these higher prices are not worth the hassle.

Ty

Feb 04, 2010 05:16 AM
Brian Madigan
RE/MAX West Realty Inc., Brokerage (Toronto) - Toronto, ON
LL.B., Broker

I guess we'll have to see what happens in February.

The central area prices went up before the recession, then moderated. More recently, less preferential areas started to catch up.

This means that the central area will likely zoom again. Rosedale should perform better than Rexdale!

Feb 04, 2010 01:02 PM
Janice Ankrett
Burlington, ON
Staging Professional

Brian, how do you think these statistics will affect the attitudes of sellers and buyers?

Feb 05, 2010 01:37 AM
R. Greg Osmond
Sutton Group-Capital Realty Ltd. - St Johns, NL
MBA, Red Maple Realty

Brian,  Markets need to come down once in a while.  Its part of how the confidence of future buyers is established.  When prices keep climbing without a breather, people begin to get skittish and desperate.

Feb 05, 2010 02:17 AM
Brian Madigan
RE/MAX West Realty Inc., Brokerage (Toronto) - Toronto, ON
LL.B., Broker

Janice,

I will publish something in a few days on this.

Greg,

You're right, it can't go up forever.

Brian

Feb 05, 2010 09:01 AM