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THE TORONTO AREA REAL ESTATE MARKET IS HAVING A GREAT SUMMER!
TREB reported that in July, there were 7,922 sales for the month. July 2010 there were 6,566 sales, so we have experienced an approximately 20% INCREASE in the number of sales compared to last year.
Currently there are only 17,546 homes for sale on the Toronto Real Estate Board, compared to 21,096 at the end of July 2010. That represents about a 18% drop! Think of this. There was a 20% increase in sales and a 18% drop in available homes. Supply and Demand is continuing to be out of whack. What’s interesting to note is that this summer, the amount of inventory stayed pretty stable whereas last year there was a significant drop from May to July. There were significantly MORE new listings this July vs 2010. Inventory levels have stabilized and we may start seeing some increases. I’ll keep a close eye on that for you.
So the question remains...what will happen to the market? My opinion is that the market will continue to be strong until well into 2012. There will be price increases but at slower rates than we’ve experienced over the last year. Inventory levels will likely slightly increase, however in most areas the price ranges conditions will still stay favouring Sellers. As I regularly remind you, I will continue to watch for the following conditions that could cause the market to cool down and prices to level off or drop.
1.The number of Buyers (the number of sales) will need to drop. That surely doesn’t seem to be the case.
2.Mortgage rates will need to go UP significantly! I heard they may go down further!!!
3.Inventory levels will need to go UP significantly. Levels keep dropping at an alarming rate and there’s a surprisingly low number of new listings coming on the market.
4.Our national or local economy will need to SUFFER significantly. The economy in Canada and particularly in the GTA seems to be getting better. Despite the scary messages from political parties wanting to get into power, things are pretty good. We should be thankful to live in this country.
Whether selling OR buying, the key to taking advantage of current market conditions is working with the right Realtor. When you hear of anyone who may want to buy or sell, please contact me at the office. I promise you that I will take care of them, do a great job and provide them with the best customer service. If you would like any more information, I’m here to help.