A number of people have asked me how the real estate market is doing at the moment. The media as usual tells about half the story.
Yes volume is down. However there are some specific reasons for this.
In Toronto a normal market generally has 20000-24000 listings on the market at any time. For the past year we have been dealing with a situation where listings have tended to be low.
In March 2009 we had 23,642 listings on the market in the month of March. In 2008 there were 20,533 listings on the market in the month of March.
Currently in 2011 there were 16,616 listings in the months of March. So if you are hearing that sales are down by 12.5% then you are hearing correctly.
However, this co-relates directly to the number of listings on the market. We can’t sell product that is not there.
Currently sales are off by about 3000 units for 2011 compared to 2010. Prices are up because folks are competing for the listings that are out there.
Of course there are always homes that don’t sell in any market. They have a poor layout, they are not staged and showing in tip top condition or there
is a problem with the location. Last of all could be that they are simply priced way over the marketplace.
The average sale price in Toronto for the “Year To Date” is $448,714.00 or up 4.9% over 2010. If you purchased during the 2009 slump where the average sale price was $357,817.00 then give yourself a pat on the back. You have increase your equity by about 19.5%. In 2009 prices dropped by 5.6% for about a 9 month period. They quickly shot back up to normal numbers.
If you are buying right now it is a challenging market to be in. If it’s nice everyone is after it. You may want to consider looking for an “Ugly Betty” type house or one that has not been staged as these do sell for considerably less.
If you are planning a sale this spring the next 30 days are critical for getting your home to market to obtain Top Dollar.
Let me know if I can help. You can have me paged or texted by calling 416-443-0300
Aeriol Nicols