YTD Real Estate Sales In Toronto Show Large Improvement Over 2008

We’ve just experienced the strongest November for sales in the Toronto Real Estate Board history – 7,446 houses and condominiums changed hands in the month. Not unexpectedly, this is double the number of sales one year ago when we were in the depths of the world recession.

The bellweather ratio of sales-to-listings or absorption rate is still above 50% (53.9% to be exact) mainly due to a 49% drop in listing inventory from the same period in 2008. We had approximately 14,000 listings on the market during the month. In a normal year that figure would range from 18,000 to 22,000 for November.

Although we are seeing record number of Toronto house and condo buyers in the market, the real problem is the lack of listing inventory. When we finally do see an increase in homes being listed (estimated by CMHC to be next spring), it will bring a healthy (and welcome) balance to the market.

The average sale price during the month of November was $418,460, down from $423,559 in October but up 13.5% from one year ago. Interestingly, the average sale price year-to-date is up by just 3.09% from 2008, thereby showing that there is still affordability out there for many home buyers.

If you look at the graph to the right you’ll see that the long-term line showing average sale price has always been on an upward trend. We definitely have had our blips but overall we’ve always come through them well.

Toronto home purchasers are increasingly embrassing the condominium lifestyle – in November 33.9% of sales were to condo townhouse or high-rise home buyers. This is the largest number I’ve seen ever. It’s pretty evident that many Torontonians are seeing the advantages to getting into home ownership by starting with a condo purchase.

To read more about Toronto Real Estate Board statistics for November, read the entire TREB MarketWatch Newsletter.

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