Toronto Sales are UP!
Here's the real scoop on the Greater Toronto Real Estate Market...
The media has reported nonsense and caused distress to both buyers and sellers in recent months. Sellers were made to think that 3 day sales are normal... it was never normal, and buyers were told they had control of the market... they did not. Both sides of the process were strongly mislead and caused to make silly mistakes. Question the motives of some these past reports and so called experts... If I had my way... they would be held accountable.
Here's the best little post on the reality, the facts, and the nonsense from someone who knows the business of GTA real estate. \Sergio
By Brian Madigan LL.B.
(Ontario Real Estate Source)
I know that you thought that the sales were going down and that interest rates and the HST had killed the market.
The bad month was supposed to be August. So, let's have a look at the August numbers over the last 7 years.
Year...........Sales
2004..........6,743
2005..........7,498
2006..........6,976
2007..........8,059
2008..........6,318
2009..........8,035
2010..........6,232
The average number of sales in the month of August is 7,132. That means that this year we would be 891 sales short, which represents a 7.99% decline.
Just because there were 891 fewer sales in August, does that mean that the market has tanked? Some would say so. Just look at the current newspaper headlines, and the TV stories.
Let's have a look at the annual sales figures for the last 7 years from January until the end of August in each year:
Year,,,,,,,,,,Sales
2004..........63,099
2005..........60,309
2006..........60,633
2007..........68,463
2008..........58,618
2009..........59.616
2010..........64,313
The average number of sales over the last 7 years from January to the end of August was 62,150. That means that in 2010, there were 2,163 additional sales which represents a 3.48% increase. Not too bad for a market that is tanking.
Now, let's have another look at the numbers over that last 7 years. Only 2007 was higher at 68,463. That means that 2010 had the second highest number of sales for the first 8 months over that measurement period.
So, why all the worry?
Let's have a look at 2010, month to month:
Mon.........Sales
Jan..........4,986
Feb..........7,291
Mar..........10,430
Apr..........10,898
May..........9,470
Jun..........8442
Jul...........6,564
Aug.........6,232
What you will notice is that March and April were exceptionally strong months. And, if there is a real estate story in 2010 about the market, it should be the strength of those two months.
Remember that the common advice in the Spring was:· Take advantage of low interest rates, and
· Beat the HST
There's really nothing unusual. The consumer just followed the common advice.
You can't have the sales in March and April, and then expect them to be there in August too!
The 2010 market is simply performing predictably as it should.
Brian Madigan LL.B., Broker is an author and commentator on real estate matters, if you are interested in residential or commercial properties in Mississauga, Toronto or the GTA, you may contact him through Royal LePage Innovators Realty, Brokerage 905-796-8888
www.OntarioRealEstateSource.com
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