Toronto Real Estate Market Enters ‘Neutral’ Territory

Hope you enjoyed the Toronto home buyer’s market while it was here because now it’s GONE!

So far anyway. The mid-month stats from the Toronto Real Estate Board show that the bellweather ratio of sales-to-listings is at 24.3%.

Here’s the rule of thumb… above 28% is a seller’s market, between 24%-28% is a neutral market and below 24% is a buyer’s market.

Throughout last year until the world crashed in September, this ratio was in the low-mid 30′s. By November and December of 2008, we were in the 13% range… strong buyer market territory. Then boom… February hit 19.2%. And now, 24.3% !!

I just listed a fantastic condo penthouse loft yesterday and got an offer on it today… things are moving out there if the pricing is right.

Projections show that March sales should be down just 15.8% from a year ago and inventory is up just 11.9% over March 2008. Things are coming into line. Frankly, I like the market the way it’s been this year. It’s a fair market with both buyers and sellers being able to do well for themselves.

Many of our clients are taking advantage of the move-up opportunity and getting a larger home for themselves while the prices and mortgage interest rates are low. Our loft seller got a terrific price on a large 2-bedroom suite on Soho just off Queen near Spadina along with a 4% interest rate on his mortgage!

The 2009 RE/MAX First-Time Buyers Report, highlighting first-time buying activity in 32 residential housing markets across Canada, found that improved affordability is prompting many first-time buyers to get off the fence, out of the rental, and into the market.

While a sense of caution still prevails, more and more firsttimers are finding it hard to pass up the chance to become homeowners in today’s buyer‐centric real estate climate. Increased inventory and longer days on the market coupled with the lowest lending rates ever are presenting opportunities that have not been seen in almost a decade.

“While the current economic crisis has caused some first-time buyers to either take it slowly or apply the brakes, home ownership remains a top priority for those who are able to take advantage of reduced carrying costs, rock bottom interest rates and lower house prices,” explains Michael Polzler, Executive Vice President and Regional Director, RE/MAX Ontario‐Atlantic Canada.

“Affordability has greatly improved and buyers are firmly in the drivers’ seat in just about every market we surveyed. The new reality is that homeownership remains well within reach for most first-time buyers.”

Our broker, Debra Bain, was interviewed by Global News a couple of nights ago… take a look at what she had to say about today’s market.

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