2009 has come and gone and will be remembered for the economic slowdown that led many to start ushering the dreaded “R” word.  The Toronto housing market gave us a rollercoaster ride, starting with a strong buyers market in the first few months of the year and ending in one of the hottest sellers market we have seen in the last twenty years.

December was no different with the Toronto Real Estate Board recording 5,541 home sales – up 115% from the previous year (2,577 sales) and was the best December ever recorded.  The previous highest December was in 2007 with 4,646 sales.  The below graph is a history of December sales, and there is a distinct upward trend with a big drop in 2008.

Perhaps one of the most requested statistic is that of average price.  The average price for December 2009 was $411,931, up from $361,415 just twelve months earlier.  That’s an increase of approximately $50,000 in one year.

Average price of homes in Toronto have seen a steady increase over the years.  The below graph shows the average price from 1995 to 2009 and any potential home buyer can see that investing in real estate is always a safe bet.  Average prices have grown year after year, and property values continue to grow.

The next graph delves even deeper, and shows the percentage change year after year (on average) on property values in the GTA.  In 2009, we saw average prices increase 4.25% from the previous year (note, this number was deflated due to the slow months at the beginning of the year), but as the graph shows, property values have consistently increased 4-6% every year.  This is a very important statistic if you are planning on purchasing a home and want to get an idea of how much your home will be worth when it comes time to sell.

One of the biggest stories of 2009 was the sudden shift from a buyers market (the first buyers market we have seen in many years) to a very strong sellers market.  The graph below illustrates this – the purple line shows the rapid change for 2009 and shows how since June we have seen a drastic change in the market place.  While the interest rates and cost of home ownerships remains low, Buyers will continue to look for homes, leaving the sellers in control.

2009 was a very interesting year in the housing market.  As other economic indicators told us we were heading for a dreaded “R”, the housing market remained one of the strongest sectors through the economic slowdown.

If forecasts are accurate, then we expect 2010 to follow on from 2009.  Interest rates will remain low for the next 6 months at least means buyers will continue to search, and leaving sellers in control.

Looking forward to a very exciting 2010!

All the best,
Roy