While everyone is concerned about job losses and the declining number of sales a curious thing is happening.
Greater Toronto REALTORS® Reported 4,120 Resale Housing Transactions in February
March 05, 2009 -- Toronto Real Estate Board Members reported 4,120 sales in February 2009 compared to 6,015 sales recorded in February 2008. The average home price was $361,305 last month compared to $382,048 during the same month last year.
That's not a very long banner.
BUT the details are what is interesting;
In the West section ( that I serve) Last year Feb 08, we had 7,359 listings with 2,358 sales. A ratio of approximately one in four that sold or 32.04%
This Feb. 09, we had 7,944 listings with 2544 sales. A ratio of approximately one in four that sold or 32..02%
Complete table for last 14 month period of West Toronto Sales.
There are two vastly different perspectives I wish to draw your attention to;
While everyone is screaming at the top of their lungs that things are bad, it is exactly as it was statistically as was last year at this time.
The number of available listings and the number of sales during that month period are almost identical.
There has been no dramatic increase in the number of for sale signs, There have been no huge upswings in Power of Sales or foreclosures, and indeed families are not living in the streets.
Yes, it would apprear that the average price of homes has trended slightly downward; but if eleven Million dollar homes sold into that same average calculation the numbers would be displayed (spin would be different). The headline I heard tonight was average homeowner lost $20,000.
OR the sold prices are averaging 5% difference from last year. Which headline sounds better to keep you on the edge of your seat?
Complete Download of the Market Watch Report is available here
While out in Markland Wood this past Wednesday with Steven D'Sousa, CBC Videographer, I was asked "Where are all the For Sale Signs?" I tried to explain, that in mature (40 + Years) neighbourhoods there are an average of 3.7 to 4.2% of homes sold in any given year. Given that ratio, a given neighbourhood will have only 37 to 42 listings in one year. Those buyers that want these desireable locations in the west end of Toronto, will decide to buy them or wait.
When asking prices are adjusted (reduced) they will at some point find a buyer. We are currently in a buyer's market with Purchaser's being able to negotiate incredible deals. This may change while the talking heads and pundits are bickering on the evening news and in the fall you may see a change in the ratios. By the time you realise the change your negotiation opportunity has passed you by.
If you are considering the sale of your home in west Toronto / Etobicoke / Mississauga I would like to hear from you. Contact me at 647 218 2414.
My money is still on real estate, I would never fit into a safety deposit box.