Market Watch Update Feb 05, 09
GTA REALTORS® Report 2,670 Resale Housing Transactions in January
February 5, 2009 -- According to TREB president Maureen O'Neill, there are opportunities at any point in the housing market cycle.
“Moderated housing prices combined with low interest rates could present excellent long-term investment and homeownership opportunities in the GTA housing market,” noted TREB President Maureen O’Neill. ”REALTORS® can help potential home buyers and investors identify value in today’s market.”
Greater Toronto REALTORS® reported 2,670 sales in January compared to 5,075 in the first month of 2008
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How do you spin a 50 % reduction in sales? Thats a Buyer's Strike.
Showing posts with label Buyers Strike. Show all posts
Showing posts with label Buyers Strike. Show all posts
Thursday, February 5, 2009
Friday, January 9, 2009
Buyers Strike Continues; Year End Stats, Toronto Real Estate
2,500 GTA Housing Resales in December, 74,000 in 2008
Toronto Real Estate Board Members reported 2,577 sales in December 2008, compared to the 4,646 recorded during the same month in 2007, and the 4,447 recorded in December 2006, TREB President Maureen O'Neill announced today.
"Sales for the whole of 2008 were 74,552, compared to the 93,193 recorded in 2007, and the 83,084 recorded during 2006."The average price in December of 2008 came in at $361,415, compared to $394,931 in 2007, and $336,217 in December of 2006. For 2008 as a whole, prices averaged $379,347, compared to the $376,236 recorded in 2007, and the $351,941 average recorded in 2006.
The City of Toronto (416) recorded 1,105 sales in December, compared to 2,302 in December 2007 and 1,827 in December of 2006. For all of 2008, there were 29,878 sales, compared to 39,052 in 2007 and 34,404 in 2006.The average price in the city was $387,482 compared to the $425,842 recorded in December of 2007 and the $350,139 recorded in December 2006. For all of 2008 the average was $410,271. In 2007 the comparable figure was $412,480, and in 2006 $378,776.
The 905 area saw 1,472 sales in December, from 2,344 in December of 2007 and 2,620 in December of 2006. For all of 2008, there were 44,674 sales in this region, versus 54,141 in 2007 and 48,680 in 2006.The average price in the 905 was $341,847 in December, compared to $360,307 in 2007 and $326,509 in 2006. For all of 2008, the average was $358,665, as compared to $350,092 in 2007 and $332,976 in 2006.
Breaking down the total, 993 sales were reported in TREB's 28 West districts and averaged $338,855; 473 sales were reported in the 14 Central districts and averaged $479,095; 491 sales were reported in the 23 North districts and averaged $381,975; and 620 sales were reported in TREB's 21 East districts and averaged $291,488.
Median PriceThe median price for December was $305,000, compared to $320,950 in 2007 and $290,000 in 2006.The Median for the year as a whole was $325,000, as opposed to $318,200 in 2007 and $299,000 in 2006.
Complete Report;
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Toronto Real Estate Board Members reported 2,577 sales in December 2008, compared to the 4,646 recorded during the same month in 2007, and the 4,447 recorded in December 2006, TREB President Maureen O'Neill announced today.
"Sales for the whole of 2008 were 74,552, compared to the 93,193 recorded in 2007, and the 83,084 recorded during 2006."The average price in December of 2008 came in at $361,415, compared to $394,931 in 2007, and $336,217 in December of 2006. For 2008 as a whole, prices averaged $379,347, compared to the $376,236 recorded in 2007, and the $351,941 average recorded in 2006.
The City of Toronto (416) recorded 1,105 sales in December, compared to 2,302 in December 2007 and 1,827 in December of 2006. For all of 2008, there were 29,878 sales, compared to 39,052 in 2007 and 34,404 in 2006.The average price in the city was $387,482 compared to the $425,842 recorded in December of 2007 and the $350,139 recorded in December 2006. For all of 2008 the average was $410,271. In 2007 the comparable figure was $412,480, and in 2006 $378,776.
The 905 area saw 1,472 sales in December, from 2,344 in December of 2007 and 2,620 in December of 2006. For all of 2008, there were 44,674 sales in this region, versus 54,141 in 2007 and 48,680 in 2006.The average price in the 905 was $341,847 in December, compared to $360,307 in 2007 and $326,509 in 2006. For all of 2008, the average was $358,665, as compared to $350,092 in 2007 and $332,976 in 2006.
Breaking down the total, 993 sales were reported in TREB's 28 West districts and averaged $338,855; 473 sales were reported in the 14 Central districts and averaged $479,095; 491 sales were reported in the 23 North districts and averaged $381,975; and 620 sales were reported in TREB's 21 East districts and averaged $291,488.
Median PriceThe median price for December was $305,000, compared to $320,950 in 2007 and $290,000 in 2006.The Median for the year as a whole was $325,000, as opposed to $318,200 in 2007 and $299,000 in 2006.
Complete Report;
You can sign up to receive this Live Market Tracker Report Instantly
Correction Not Crash for Real Estate
Correction, not crash for Canadian real estate market in 2009; Average house prices forecast to fall 3.0 per cent
- Historically low interest rates, stable local economies and increasing affordability should upport Canada's residential real estate market during transitioning period -
TORONTO, Jan. 6 /CNW/ - After experiencing a significant reset in 2008 -a reaction to continuous dire news surrounding the health of the global economy combined with a cooling from the previous years' fervid activity levels - Canada's resale real estate market should see only modest price and unit sales corrections take place across the country during 2009. Both national average house prices and the number of homes sold is expected to decline this year, according to the Royal LePage 2009 Market Survey Forecast released Jan 06,09.
Nationally, average house prices are forecast to dip by 3.0 per cent from last year to $295,000, while transactions are projected to fall to 416,000 (-3.5 %) unit sales in 2009. In spite of this cooling trend on a national level, price and activity gains are anticipated in some provinces.
Emotional reaction to recent economic and political instability did much to dampen consumer confidence during the latter part of 2008, causing a marked slowdown in house sales activity. However, as a more rational understanding of the issues gains ground, together with a wide range of announced corrective measures, consumer confidence is anticipated to recover, prompting real estate activity to pick up once again in the latter half of 2009. Further, Canada in
2009 enjoys a stronger economic foundation than most countries and that should temper the housing market correction. The combination of low inflation, reasonable employment levels and improving housing affordability, driven in part by low mortgage rates, are anticipated to stimulate demand in the coming months.
"While Canada's housing market is anticipated to continue to move through a period of adjustment over the next six months, we should expect modestly lower home prices, not a U.S.-style collapse, which was brought on by a structural failure of the entire American credit system," said Phil Soper, president and chief executive of Royal LePage Real Estate Services.
"Most consumers are not aware that nationally, Canadian housing market activity peaked in 2007 and has been adjusting lower since. We are well into this inevitable cyclical correction."
Added Soper: "While a grey cloud hangs over some markets, the sky is not falling. In recent years, Canada has been a difficult place to be a purchaser of real estate, particularly for first-time buyers. When real estate markets correct, inventory levels rise, providing buyers choices instead of frustrating bidding wars. In 2009, appropriately-priced homes will still sell
for fair value."
The housing market is expected to perform quite differently from region to region across the country. In many mid-sized cities where home prices remain below the national average, such as Regina and Winnipeg, prices are expected to increase moderately through 2009, as home ownership remains particularly affordable. The most significant price decreases are forecast for
Canada's most expensive city, Vancouver, which has experienced above average price increases for most of the decade. The correction is a natural cyclical reaction to an extended period of high price appreciation. Vancouver's fundamentals, including growing population figures and the positive economic spinoffs expected from the 2010 Olympics, remain very positive.
Read balance of News release Posted on CNW
David Pylyp; This very resoundingly echoes my own observation. I felt hesitation even last year in October 07, as people considered their debt loads and consumer confidence. The Canada Mortgage and Housing Forecast does call for a Price adjustments in different regions but overall discusses how the market will be more balanced over the next year.
The challenge it seems; is how to deal with the Buyer's Strike rather than a Buyer's Market.
- Historically low interest rates, stable local economies and increasing affordability should upport Canada's residential real estate market during transitioning period -
TORONTO, Jan. 6 /CNW/ - After experiencing a significant reset in 2008 -a reaction to continuous dire news surrounding the health of the global economy combined with a cooling from the previous years' fervid activity levels - Canada's resale real estate market should see only modest price and unit sales corrections take place across the country during 2009. Both national average house prices and the number of homes sold is expected to decline this year, according to the Royal LePage 2009 Market Survey Forecast released Jan 06,09.
Nationally, average house prices are forecast to dip by 3.0 per cent from last year to $295,000, while transactions are projected to fall to 416,000 (-3.5 %) unit sales in 2009. In spite of this cooling trend on a national level, price and activity gains are anticipated in some provinces.
Emotional reaction to recent economic and political instability did much to dampen consumer confidence during the latter part of 2008, causing a marked slowdown in house sales activity. However, as a more rational understanding of the issues gains ground, together with a wide range of announced corrective measures, consumer confidence is anticipated to recover, prompting real estate activity to pick up once again in the latter half of 2009. Further, Canada in
2009 enjoys a stronger economic foundation than most countries and that should temper the housing market correction. The combination of low inflation, reasonable employment levels and improving housing affordability, driven in part by low mortgage rates, are anticipated to stimulate demand in the coming months.
"While Canada's housing market is anticipated to continue to move through a period of adjustment over the next six months, we should expect modestly lower home prices, not a U.S.-style collapse, which was brought on by a structural failure of the entire American credit system," said Phil Soper, president and chief executive of Royal LePage Real Estate Services.
"Most consumers are not aware that nationally, Canadian housing market activity peaked in 2007 and has been adjusting lower since. We are well into this inevitable cyclical correction."
Added Soper: "While a grey cloud hangs over some markets, the sky is not falling. In recent years, Canada has been a difficult place to be a purchaser of real estate, particularly for first-time buyers. When real estate markets correct, inventory levels rise, providing buyers choices instead of frustrating bidding wars. In 2009, appropriately-priced homes will still sell
for fair value."
The housing market is expected to perform quite differently from region to region across the country. In many mid-sized cities where home prices remain below the national average, such as Regina and Winnipeg, prices are expected to increase moderately through 2009, as home ownership remains particularly affordable. The most significant price decreases are forecast for
Canada's most expensive city, Vancouver, which has experienced above average price increases for most of the decade. The correction is a natural cyclical reaction to an extended period of high price appreciation. Vancouver's fundamentals, including growing population figures and the positive economic spinoffs expected from the 2010 Olympics, remain very positive.
Read balance of News release Posted on CNW
David Pylyp; This very resoundingly echoes my own observation. I felt hesitation even last year in October 07, as people considered their debt loads and consumer confidence. The Canada Mortgage and Housing Forecast does call for a Price adjustments in different regions but overall discusses how the market will be more balanced over the next year.
The challenge it seems; is how to deal with the Buyer's Strike rather than a Buyer's Market.
Friday, November 21, 2008
Buyer's Market or Buyer's Strike?
Things have noticeably slowed down in the past year, with home buyers hitting some invisible wall about mid September, but many Real Estate Buyer's fear today's prices will seem way too high tomorrow, so they're sitting on the sidelines.
People simply will stop buying, When the difference between what buyers want to pay and what sellers wanted to receive widens dramatically.. and then some homes couldn't find any buyers at all.
Buyer’s strikes aren't one-day phenomenon, but neither do they stretch on for months. The strike ends when buyer’s think they again know what homes are worth and stop sitting on their hands in fear that any price they pay today will seem like way too much tomorrow.
This one will work itself out over the next couple of months as houses, jobs lay offs, stocks, bailouts and confidence, that are the focus of media right now, subprime mortgages (US), government guarantees of Banks, work out for the auto industry and the debt used to finance buyouts and housing prices themselves.. get re-priced.
"Re-priced" "Price Reductions" "New Price" is all real estate jargon for "reduce the asking price until they find a Buyer at the new price."
Buyers strikes end when buyers become satisfied that today's prices accurately reflect the risks in the market. Prices get marked down. More homes selling at those prices reassures home buyers that those prices will stick. And with trust in prices restored, buyers return to the market.
So what is a buyers strike?
In an orderly market, the price of homes and condos may be moving up or down, but the difference at any one moment between what buyers want to pay and what sellers want to receive is relatively small. This is reflected in the modest annual increases that continued in the Toronto market ’99 – ’05 (gains of 3-5% in excess of what might be earned on your Canada Savings Bonds)
What causes such a buyers strike?
Think of it like deer-caught-in-the-headlights moment for the home buying market. Buyers are so uncertain about the validity of current prices that they freeze into inactivity, buying nothing, until they think they can trust prices again. FUD see previous entry
Why would anybody buy real estate assets now, right now? Stability. Opportunity. If you own a home now that is almost paid for, your opportunity to move UP into something better, either by size or neighbourhood, closer to your place of employment has never be better.
That said, maybe my background from the financial services sector makes me too analytical.
Homeowners with better credit ratings but with challenges such as an the inability to document income, might need to be more forthcoming with details and disclosures to obtain financing, but those with solid employment and credit histories can obtain great deals on financing!
If you are sitting on the fence about when to step into the west Toronto real estate market and are considering the sale of your property, I would like to meet with you.
People simply will stop buying, When the difference between what buyers want to pay and what sellers wanted to receive widens dramatically.. and then some homes couldn't find any buyers at all.
Buyer’s strikes aren't one-day phenomenon, but neither do they stretch on for months. The strike ends when buyer’s think they again know what homes are worth and stop sitting on their hands in fear that any price they pay today will seem like way too much tomorrow.
This one will work itself out over the next couple of months as houses, jobs lay offs, stocks, bailouts and confidence, that are the focus of media right now, subprime mortgages (US), government guarantees of Banks, work out for the auto industry and the debt used to finance buyouts and housing prices themselves.. get re-priced.
"Re-priced" "Price Reductions" "New Price" is all real estate jargon for "reduce the asking price until they find a Buyer at the new price."
Buyers strikes end when buyers become satisfied that today's prices accurately reflect the risks in the market. Prices get marked down. More homes selling at those prices reassures home buyers that those prices will stick. And with trust in prices restored, buyers return to the market.
So what is a buyers strike?
In an orderly market, the price of homes and condos may be moving up or down, but the difference at any one moment between what buyers want to pay and what sellers want to receive is relatively small. This is reflected in the modest annual increases that continued in the Toronto market ’99 – ’05 (gains of 3-5% in excess of what might be earned on your Canada Savings Bonds)
What causes such a buyers strike?
Think of it like deer-caught-in-the-headlights moment for the home buying market. Buyers are so uncertain about the validity of current prices that they freeze into inactivity, buying nothing, until they think they can trust prices again. FUD see previous entry
Why would anybody buy real estate assets now, right now? Stability. Opportunity. If you own a home now that is almost paid for, your opportunity to move UP into something better, either by size or neighbourhood, closer to your place of employment has never be better.
That said, maybe my background from the financial services sector makes me too analytical.
Homeowners with better credit ratings but with challenges such as an the inability to document income, might need to be more forthcoming with details and disclosures to obtain financing, but those with solid employment and credit histories can obtain great deals on financing!
If you are sitting on the fence about when to step into the west Toronto real estate market and are considering the sale of your property, I would like to meet with you.
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