60 Second Market Watch – February 2010 – What a Difference a Year Makes

Posted by Roy Bhandari in Buying, Market Watch, Selling

If you ever needed an indication of just how much the housing market has changed in one year, then look no further than the February numbers posted by the Toronto Real Estate Board.  Sales in February 2010 were recorded at 7,291, up 77% from this time last year (2009 recorded just 4,120).  Further, February 2010 had the highest sales ever recorded by the Real Estate Board.

The average price is also steadily increasing, with the average price in February recorded at $431,509 – a $70,000 increase from the previous year (or +19%).  “Normal” year-upon-year growth of real estate prices is approximately 6% – so this 19% increase may be worrying for new home buyers.  Average time to sell a home in the GTA has dropped from 45 days a year ago – to just 22 days.

These numbers are a little inflated, as February 2009 was perhaps the worst of the mini-recession that we experienced this time last year.  When studying the 19% increase in price, you also must consider that last year prices had DECREASED by 6-7% from the previous year.   When you take in “normal” growth rates of 5-6% from 2006, then you will see that we are right where we should be in terms of average price.

One item of note is that NEW LISTINGS had increased 24%, to 12,726.  This leads us to believe that over the next few months we will start to see more inventory which will hopefully level the market out a little.