Toronto Real Estate Market Enters Uncharted Territory

For the first time this millenium, the Toronto market has entered strong buyer territory. With TREB sales projections for the entire month of November coming in at just under 4,000 houses and condos, the ratio of sales-to-listings should end up around the 14.5% range… the lowest it’s been since 2000!

This is down from October’s 18.9% and November’s sales will end up about 45% below the 2007 numbers. Across the board we’re seeing a 10-15% decline in prices from those comparable sales prior to August/September.

This decline in sales is almost entirely due to a loss of consumer confidence… it’s NOT caused by overbuilding or by sub-prime mortgages or by an influx of power-of-sale bank repossessions hitting the market. What no one can predict right now is how long that loss of confidence will last.

Some of our clients have asked ‘what are the numbers of bank repossessions in Toronto?’. Take a look…

Low Rate Of Mortgage Arrears in Ontario (0.3%)

USA Foreclosure Sales Numbers (6.45%)

Good news. You’ll notice from these CMHC graphs that the numbers of repossessions in Ontario are a fraction of those happening in the US!!!

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