Toronto Real Estate Sales Are Still Strong

Toronto Real Estate – Strong Market Conditions

November Toronto Real Estate Board MLS sales were at 6,281 houses and condominiums… down about 5.5% from last year’s record pace.  In the month 1,962 condominium apartments and townhouses were sold comprising 31.2% of the market… a higher percentage than we’ve seen recently.

Board President Dorothy Mason stated that this year sales have already surpassed 80,000 houses and condos for only the third time in Toronto MLS history.  The November average sale price is $355,727 which is up 4% from 2005.

If December sales approximate 4% less than 2005 as well, we’ll be within 1% of 2004 sales which, at the time, was also a record year.

The key market indicator ratio of sales-to-listings dropped to 27.3% showing a slight slide into the ‘neutral’ market range (neutral is 24-28% with a buyer’s market being below 24% and a seller’s market being above 28%).  This is mainly due to the increase in available listings on the Toronto Real Estate Board MLS system.  Listings for November were up 8.8% over one year ago!

Jason Mercer, Canada Mortgage and Housing Corp.’s Senior Market Analyst for the GTA, agrees that the resale market is on solid footing.

“Existing home sales have remained very respectable through the first two months of the fourth quarter,” he said.

“Home buyers have remained confident in their ability to purchase a home due to low borrowing costs and steady employment and wage growth, on average.”   In fact, a knowledgeable mortgage shopper can obtain a 5-year fixed mortgage for around 5.15% today!

In November the median price for a detached resale home in the GTA was $368,000, down from $375,000 in October.

The median price is the point at which half of resales sold for less and half sold for more.  Amazingly enough, there are still condominiums in Toronto, in nice neighbourhoods, for less than $125,000.  These are perfect for starting a home ownership ‘career’ and building equity instead of paying rent.

Of course, more inventory, or supply, means more choice for buyers. More choice for buyers means less demand for the properties for sale, which in turn puts less upward pressure on prices.

To view the entire Toronto Real Estate Board MarketWatch stats, click here.
Toronto Real Estate

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