Sourced from Canada Mortgage and Housing Report covering to end of 2008.
Average annual price changes in Ontario and the GTA moderated considerably in
the last decade. The incredible spike in prices from the mid to late 80′s was
not in evidence before this recession. While not on this chart, prices in
January, 2009 were down about in Ontario and in the GTA. Late spring 2009 showed a strong rebound with record sales in June.
Existing Home Price Changes
Number of MLS Sales in the
GTA
Prices have held up fairly well, but sales have declined since
the spike in 2007. This spike may have been partially caused by the new Toronto
Land Transfer Tax as buyers and sellers rushed to complete their transactions
before it took effect. The big chill in our market was probably a reflection of
the news from the US housing market and the media’s insistence we had the same
problems here. We didn’t have their speculation and crazy mortgages.
The CMHC estimates sales volume has declined to a steady level, given to family
formation rate and number of immigrants seeking housing.
Buyers Market Confirmed
In this chart we see ratio of new listings to sales. In other
words, if the new listings are adding to the pool of unsold homes (inventory)
rather than being sold, then the inventory grows and puts pressure on sellers to
reduce prices. At levels above the red line below, its a seller’s market with
little inventory and lots of buyers. Below the blue line, lots of inventory and
fewer buyers favour the buyer. As you can see, we were in a buyer’s market,
although not a severe as the early 90′s. Since May, 2009 we are in a balanced market with things moving well, but prices remaining at about the same levels as 2008.
Total Listings Increase to
Enlarge Inventory
There are lots of homes on the market giving buyers great
selection and negotiating power. This could be a good time to move up or acquire
an investment property. Our broker, Ken McLauglin, owns one of the largest
brokerages in the world. In fact, we’re expanding in this recession, adding two
new offices with over 500 agents. Ken’s blog advises that this year will be a
tremendous window of opportunity to acquire investment property or to move up.
For more statistics and interpretation, please see The Condo
Market and Existing Single Family Homes
Housing Trends
Sourced from Canada Mortgage and Housing Report covering to end of 2008.
Average annual price changes in Ontario and the GTA moderated considerably in
the last decade. The incredible spike in prices from the mid to late 80′s was
not in evidence before this recession. While not on this chart, prices in
January, 2009 were down about in Ontario and in the GTA. Late spring 2009 showed a strong rebound with record sales in June.
Existing Home Price Changes
Number of MLS Sales in the
GTA
Prices have held up fairly well, but sales have declined since
the spike in 2007. This spike may have been partially caused by the new Toronto
Land Transfer Tax as buyers and sellers rushed to complete their transactions
before it took effect. The big chill in our market was probably a reflection of
the news from the US housing market and the media’s insistence we had the same
problems here. We didn’t have their speculation and crazy mortgages.
The CMHC estimates sales volume has declined to a steady level, given to family
formation rate and number of immigrants seeking housing.
Buyers Market Confirmed
In this chart we see ratio of new listings to sales. In other
words, if the new listings are adding to the pool of unsold homes (inventory)
rather than being sold, then the inventory grows and puts pressure on sellers to
reduce prices. At levels above the red line below, its a seller’s market with
little inventory and lots of buyers. Below the blue line, lots of inventory and
fewer buyers favour the buyer. As you can see, we were in a buyer’s market,
although not a severe as the early 90′s. Since May, 2009 we are in a balanced market with things moving well, but prices remaining at about the same levels as 2008.
Total Listings Increase to
Enlarge Inventory
There are lots of homes on the market giving buyers great
selection and negotiating power. This could be a good time to move up or acquire
an investment property. Our broker, Ken McLauglin, owns one of the largest
brokerages in the world. In fact, we’re expanding in this recession, adding two
new offices with over 500 agents. Ken’s blog advises that this year will be a
tremendous window of opportunity to acquire investment property or to move up.
For more statistics and interpretation, please see The Condo
Market and Existing Single Family Homes