GTA Realtors report sales up first two weeks of July
In the first two weeks of July, Greater Toronto Realtors reported 4,437 sales – up an amazing 27% compared to the first two weeks of July 2008. The average price for these transactions is also rising, up 4% year-over-year to $394,750.
Comment: So that is 6 weeks in a row averaging 27% more than last year. But of course, according to all of the experts, this is just a blip. May saw a record number of million-dollar homes sell. June was the best ever. And now July is posting even better numbers than June. And this is with mortgage rates rising a full percentage point. I guess a meteor is coming to smash everything to bits… that is the only way this is going to come crashing down.
“The resurgence in home ownership demand experienced in the spring has continued into the summer. Home buyers continued to take advantage affordable market conditions in the first half of July,” said Toronto Real Estate Board President Tom Lebour. “If the mid-month results carry forward, we may see the best July on record.”
Comment: Two record months in a row, for overall performance. And a record in May for a single market segment. I know I said we would be seeing great numbers this year, but no one agreed.
Year-to-date sales, at 45,213, are down 4% compared to 2008. Average price, at $384,645 is down one per cent.
Comment: With the disastrous start to the year, this is really not unexpected. And to be down only 4% and 1% in volume and price, that is very very little. Another good month and we will be seeing better YTD numbers than we did in 2008.
“The Greater Toronto real estate market has held up very well this year given the current economic climate, especially relative to past economic slow-downs,” explained Jason Mercer, TREB’s Senior Manager of Market Analysis.
Comment: That is the understatement of the year.
“The cost of borrowing has been key. With inflation in check, the Bank of Canada has been able to aggressively lower interest rates – an option that wasn’t available in the early 1990s or early 1980s.”
Summary Of July Sales And Average Price
City of Toronto (sales +24% | price 0%)
2009 – Sales Volume: 1,703 | Average Price: $419,754
2008 – Sales Volume: 1,369 | Average Price: $419,199
Rest of GTA (905) (sales +28% | price +7%)
2009 – Sales Volume: 2,734 | Average Price: $379,174
2008 – Sales Volume: 2,128 | Average Price: $353,257
All of GTA (416 + 905) (sales +27% | price +4%)
2009 – Sales Volume: 4,437 | Average Price: $394,750
2008 – Sales Volume: 3,497 | Average Price: $379,072
Comment: What is truly interesting to me is that the 905 is posting bigger gains than the city itself. For many many months previous to this, it has usually been the 416 that leads the increase in sales and prices. To me, this means that a lot of people are being priced out of the Toronto market and are looking to the suburbs to find a suitable home. Toronto condos are popular, but they are not for everyone. And when decent houses in decent areas get into the $400-500,000 range (or more), people have to find alternatives.
For a complete copy of the Market Watch Report visit www.TorontoRealEstateBoard.com. Greater Toronto Realtors are passionate about their work. They adhere to a strict Code of Ethics and share a state-of-the-art Multiple Listing Service. Serving over 28,000 Members in the Greater Toronto Area, the Toronto Real Estate Board is Canada’s largest real estate board.
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