TREB Members reported 6,424 sales of single family dwellings in September, down about six per cent from the 6,866 sales recorded during September of last year. The average price of a home in Toronto stands at $382,930, up 1.2% over last year's $376,236.
The media is having a great field day about the stock market and prophesying the end of the world as we know it today. Luckily, reality is often different from what the media makes it out to be. The stock markets have been hit hard, but do you really believe the value of stocks like Google, Apple, and so many other great companies are worth so much less than they were worth last week? I think we have overreacted. It may be raining, but certainly the sky is not falling.
Here is what I know about real estate in Toronto. In 1972, the average home price was $32,513, in 1982 it was $95,495, in 1992, it was $214,971, and in 2002 it was $275, 231. Today its $382,930. Statistics Canada predicts that the average home price will be over $600,000 by 2022 (based on a 4% inflation rate.)
I also know that despite all of the negative reports, well priced homes ARE SELLING daily! Those people who kept losing in multiple offer situations are now getting the home of their dreams. Would I recommend you buy a home today? Definitely. There is greater variety, and fewer buyers so better price and terms than 3 months ago and great financing rates. Should you buy as an investment? Not right now, unless the property will carry itself from the rental income. Why not let the tenant pay off your mortgage and you benefit from the long term growth of real estate.Your home is your home and should not be gambled with. Whether it is 5% higher or lower today is insignificant compared to the 2, 3, 400% increase it will have over the next 20 years.
If you know of someone struggling with the decision to buy, give me a call, I will be pleased to help them; after all, you do have a friend in real estate!
| Housing Market Indicators | |||
| Sept 2007 | Sept 2008 | % Change | |
| Sales | 6,866 | 6,424 | (-6%) |
| New Listings | 13,653 | 16,236 | (+19%) |
| Active Listings* | 21,571 | 27,373 | (+27%) |
| *All figures for single family dwellings |
The latest newsprint articles on the real estate market can be obtained through my website link: www.fergussharpe.com/realestatenews
