With a strong October it will be interesting to see if the momentum carries over into the new year.
Typically from here on out we see a drop in inventory as most people who are selling are doing so with greater motivation or due to external factors rather than just testing the market.
In the coming months, don’t let the traditional seasonal drop in activity spook you.
Right now, we’re confident that the market will sustain. Why?
- Low interest rates that will continue for the foreseeable future
- Continued pent up demand from buyers who help off earlier in the year
- Lower inventory (favouring of course sellers)
- The advantage of real estate being a stable long term investment compared to stocks and bonds…and as they say, you can’t sleep under your RRSP!
- General strength of Canada’s economy in the global context
The factors to watch out for will be interest rates jumps, affordability as prices are on the rise and if too much inventory hits the market at once.
Check out the complete Market Watch and comments from the Toronto Real Estate Board…
TORONTO, November 4, 2009 – In October 2009, Greater Toronto REALTORS ® reported 8,476 sales, up 64 per cent from October 2008.
The average price for October transactions was $423,559 – up by 20 per cent compared to the same month last year.
“Strong sales growth has occurred across many property classes – from price ranges that would attract first-time buyers to luxury properties selling for over one million dollars,” said TREB President Tom Lebour. “The highest rate of sales growth in October was experienced for properties selling for over $750,000. In contrast, luxury home sales declined at an above-average rate last year.”
Year-to-date sales, at 74,721, were up nine per cent compared to the first ten months of 2008. Average price, at $392,264 was up by almost three per cent.
“After a short dip in the winter, the average home price in the GTA has rebounded because sales have been high relative to listings,” according to Jason Mercer, TREB’s Senior Manager of Market Analysis. “Watch for listings to rebound in 2010 as home owners react to the strong sales and price growth experienced in the latter half of this year.”