The Toronto Real Estate Board reported 8,035 sales in the month of August, up 27% from the previous year. The story continues to revolve around the strong Real Estate market, with an increase in demand and a shortage of supply leading to an increase in price.
The Graph below illustrates the shortage of inventory that we have seen in the last 8 months. The graph shows the percentage change from the same month last year. In January, we had almost 29% more inventory available in 2009 than we did in 2008. This was during the brief Buyer’s Market that we entered into at the beginning of the year. In August 2009 we had 37% less inventory than we did in 2008.
The lack of inventory is making it difficult for buyers. We are aggressively shopping with 4 buyers, and are currently unable to find what they are looking for. For many buyers, it is a game of patience and acting quickly when you find what you like.
Another interesting statistic has been the increase in average price from the previous year. The graph below displays how pricing has been affected over the last 8 months, and again these numbers are comparing the numbers from 2008 to 2009. In January, average price declined over 8%, whereas in August average price increased 6%. We were at a client’s BBQ last week for a home that they purchased $468,000 in January of this year, and noticed a SOLD sign across the street. The home across the street had 6 offers and sold for $573,000. Prices are increasing fast, there is no question about it.
Finally, the below graph displays the Active Listings-to-Sales ratio since January 2006. Again, we are seeing the very strong sellers market continue into August.
Toronto Real Estate Board is anticipating a strong fall market. If you have thought about selling your home, there is no better time than NOW. Homes are selling quicker, they are selling for more money and there are buyers waiting for new inventory.
Remember, the success of our business relies on your referrals. If you have friends or family interested in buying or selling Real Estate we would love to serve their needs.
Thanks,
Roy Bhandari (Sales Representative)
Signature Service/GMAC Real Estate
Archives:
60 Second Market Watch – July 2009 – Sellers Market back in full swing
60 Second Market Watch – June 2009 – TREB Reports Best June on Record
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