2007 was a busy year…there is no doubt about it. Activity increased a whopping 12 percent over last year for a record setting 93,193 sales.
Prices rose seven percent to $376,326 compared to last year’s $351,941 and it has taken barely a month on average for homes to sell.
It’s obvious that concerns over the U.S. economy have not had an impact on the past year but it will be interesting to see what impact the new land transfer tax (coming into effect February 1st. ) will have on buyers in 2008.
On another note, our financial advisor Shawn Rutledge of BMO Nesbitt Burns, sent an interesting commentary on the capital markets.
Fears over the economy always have an interesting effect on the real estate market but he shared a statement from Peter Lynch of Fidelity Investments who pointed out an interesting difference…
“Lynch suggests investors should emulate homeowners. “Your own home is a great investment, Lynch says, because of the key psychological reason that most of us aren’t tempted to sell our home to satisfy a whim or to escape a feared bear market. “
“‘There is no ticker tape for real estate or TV commentators mentioning that the house next to you on Lawrence Avenue declined 10% in active trading today, or that one on Roselawn Avenue went down 15%. Daily prices would drive homeowners crazy and be counterproductive.'”
The point? Invest wisely for the long term for maximum benefit and don’t let the media hype scare you out of making an investment that makes sense for you, whether in capital markets or real estate.
Check out the prices in neighbourhoods around the GTA below for their average 2007 price overall!
Neighbourhood Watch – 2007
E02 -The Beach (coxwell, danforth, victoria park)
Average Price: $494,797
E03 – Danforth North (DVP, victoria park, danforth)
Average Price: $356,759
E01 – Danforth South & Riverdale (DVP, danforth, coxwell)
Average Price: $409,611
C04 – Bedford West & Lytton Park (allen, 401, yonge, eglinton)
Average Price: $715,065
C09 – Rosedale (yonge, st.clair, bayview, bloor)
Average Price: $1,085,223
C03 – Forest Hill (allen, eglinton, yonge, st.clair)
Average Price: $823,917
C12- Lawrence Park/Bedford East (yonge, 401, leslie, eglinton)
Average Price: $1,265,707
Source: Toronto Real Estate Board 2007 MarketWatch – for the full report, click here.
Who do you know who is interested in buying or selling? Please forward my blog or pass on my info…