The spring market is definitely in full swing!
The great weather has meant a nice kick start to 2010 and buyers are coming out in droves. With that, sellers are now wanting to take advantage and we are seeing a large jump in the number of listings coming out.
My hope is that the market does not become too flooded with inventory as that will once again cause an imbalance and depress values. The danger will be sellers who see the activity in the market and become overconfident, and over price their homes.
It is extremely important to continually evaluate competitive listings that are coming out so that the listing price of your home is a reflection of the current market. You have to treat your home like any other product in the market place. If a buyer can get more for less with another home that meets their criteria, they will. Vice versa, if your home offers more, you can ask for more.
A caution to buyers as well….do not get caught up in the bidding wars that are sparking once again. I always counsel my clients to determine the number they are comfortable with, based on the value of the home, not the frenzy and emotion of the bidding situation.
But go in with your best offer – ask yourself, if you heard that the home sold for $5,000 more, would you have felt good about that price yourself? Know your limit and understand your financial situation. If you pay too much for a home, the bank may not appraise it out at your purchase price and you will be left to make up the difference on top of your down payment.
Check out the Toronto Real Estate Board Housing Charts and the full Market Watch below..
Toronto Real Estate Housing Charts
Record First Quarter Sales
April 6, 2010 — Greater Toronto REALTORS® reported 10,430 sales through the Multiple Listing Service® (MLS®) in March, pushing total first quarter 2010 sales to 22,418 – the best result on record under the current Toronto Real Estate Board (TREB) boundaries. The average price for March transactions was $434,696. The average price for the first quarter was $427,948.
“The strong rebound in the existing home market was one of the initial drivers of economic recovery,” said TREB President Tom Lebour. “While we don’t expect to see the same rates growth moving forward, GTA households will remain confident in ownership housing as a quality long-term investment, especially as economic recovery expands across all industries.”
The annual rate of growth for new listings continued to accelerate in March. The number of new listings grew by 42 per cent compared to March of 2008.
“The average home price in the GTA will continue to grow this year, but the pace will slow as we move through the spring,” said Jason Mercer, TREB’s Senior Manager of Market Analysis. “As growth in new listings starts to outstrip growth in sales, buyers will experience more choice, resulting in more sustainable single digit rates of average price growth.”
For the full Toronto Real Estate Board Market Watch, click here.