The Toronto & GTA Fall real estate market kicked off with 8,196 single family homes sold in September, up 28 per cent from September 2008. The shortage of homes for sale created a seller's market which in turn has pushed the average price of a home in the GTA to $388,417, an increase of almost 1.5% up from 2008 prices. For a year where home prices were supposed to drop 4%-6% this increase is a welcome surprise to home owners and a disappointment to those homebuyers waiting on the sidelines for the prices to drop before they bought their home.
| Housing Market Indicators | |||
| Sept 2008 | Sept 2009 | % Change | |
| Sales | 6,424 | 8,196 | (28%) |
| New Listings | 16,236 | 12,185 | (-25%) |
| Active Listings* | 27,373 | 15,894 | (-42%) |
| Days on Market | 36 | 27 | (-25%) |
| *All figures for single family dwellings | |||
Our negative attitudes this year were influenced by the bad economic news from the US. I wish our media had remembered that while we are impacted and influenced by the U.S. markets and news, our economy, population and immigration practices are markedly different. The U.S. is in for another round of bad news this Fall as a new series of ARM's (assisted rate mortgages) comes due. Let's hope our markets do not overreact. I do not believe they will.
The real estate market in Toronto will continue to be strong as interest rates remain low and buyers will be motivated to buy before the new Harmonized Sales Tax becomes implemented in July 2010. Don't let me get started on the new tax. It's outrageous that our government continues to raise taxes rather than trying to run more efficiently. To object to this tax, (I did) go to http://www.orea.com/index.cfm/ci_id/12809/la_id/1.htm or write to your MPP to express your outrage at this new level of taxation. This new tax will add several thousand dollars of extra cost to a real estate transaction, so if you know of some one considering buying, or if you are considering purchasing a cottage or investment property, the next several months would be ideal as the market 'slows down' as we head into 2010. (Slows down is a relative term, as I expect we will have 16,000 - 18,000 homes sold in the next three months, 30% more than the same period last year.)
As you can see, a knowledgeable real estate agent is more than someone driving a customer around until they find a house they like. If you know of someone who could benefit from my expertise, please let me know. I will take extra special care of them, and I truly appreciate your referral.
Fergus