If ever there was a good month for a real estate agent to take time off it was July 2010.
The number of transactions were down 34% from 2009 and new listings were at their lowest levels in eight years. Any good news? The average home price still rose 6% over the same time over 2009 which tells us that there is still enough of a balance to push values forward.
I’m looking forward to another quiet month to rest up before the managed chaos of September. Based on calls from sellers and feedback from buyers it’s starting to look like it will be a busy fall. Buyers will have a lot more choice compared to the veritable desert of listings over the summer and everyone will come back to the market refreshed and recharged.
As I have said before, the true test of the market and the impact of the economy will be revealed based on results from this coming quarter. Will values and activity sustain and grow? I think we’ll see slower growth but not a massive crash as the media has been bellowing for months. Is there really a bubble to burst?
Here are some well said comments from readers of the Toronto Life article “Bubble Trouble“…
“It appears Toronto Life has finally hopped on the fear-mongering bandwagon. The fact is, nobody really knows what is going to happen to the housing market. Articles like this, however, foster apprehension in prospective buyers. You’ve just done your part to create a self-fulfilling prophecy. Well-timed too: right before the summer slump, when you’re almost guaranteed to be accurate – at least temporarily. And yes, I did just buy a house.” – Alexander Ball, Toronto
“Your reports of hysteria in the housing market were imprudent and inaccurate. All those yellow star bursts blasting “Sold for $80,000 over asking and “Bought for $106,106 over asking” give the impression of a buyer’s frenzy. You don’t have to be a real estate expert to recognize that those houses were deliberately listed lower than their values to prompt bidding wars. Investors from all of the world bet on Toronto – over New York, London, Paris, Tokyo – because of our real estate growth potential. There are few better investment opportunities out there. The problem is that most Torontonians are easily spooked and can’t see what’s right in front of them. Real investors get rich because they’re bold enough to dive in when the average man bows out.” – Robin McCallum, Toronto
Click here for the full July 2010 Toronto Real Estate Market Watch and take a look at the TREB Housing Charts Below…