60 Second Market Watch – October 2009 – Average Prices through the Roof!

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You may have heard people in the Real Estate world talk about a shortage of inventory, however, just to paint a picture – October 2009 had the lowest number of homes for sale since January 2003 (note, this does exclude a couple of Decembers where inventory is typically low because of the holiday season). This time last year, people entering the market had almost DOUBLE the amount of homes to choose from. Active listings were down to 14,771 from 27,277 last year.

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Even scarier is the impact that this has had on average prices. Average prices have increased approximately $70,000 since this time last year, a 20% increase to $423,559. To give you an idea, stable Real Estate growth from year to year is approximately 5-7%. 20% growth is not normal, however, we do have to consider the impact of the “Stock Market Crash” that we experienced this time last year and it’s affect on prices a year ago, therefore, this 20% increase may be skewed a little because of that.

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Despite the lack of listings and increasing price, sales are through the roof. October 2009 was the BEST OCTOBER IN HISTORY in terms of sales. The Toronto Real Estate Board reported 8,476 sales in October 2009, up from 5,155 (64% increase) last year.

So let’s break that down – 64% MORE sales, 46% LESS inventory has led to 20% increase in prices.

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If you have a home to sell, taking advantage of this market situation is simple. Price correctly, stage your home, hold off on offers for 5 days and profit. If you are in the market to buy a home, then taking advantage of the situation is a little trickier. Be patient and work with your agent and above all, act quickly. Average days on the market for the entire GTA is down to 26 (from 37 last year), and there are pockets of Mississauga where the average is just 17 days.

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We expect this hot market to continue in to the holiday months. If you are interested in Real Estate around this time, make sure you have a good professional on your side!

If you wish to subscribe to our newsletter and receive monthly market updates, you can sign up at www.amitandroy.com/subscribe

Until next time!
Roy Bhandari (Sales Representative)
Signature Service/GMAC Real Estate

Archives:
60 Second Market Watch – September 2009 – GTA sales remain strong through September
60 Second Market Watch – August 2009 – Strong Seller’s Market Watch Continues Into August
60 Second Market Watch – July 2009 – Sellers Market back in full swing
60 Second Market Watch – June 2009 – TREB Reports Best June on Record

About the Author

Roy Bhandari

Roy is the younger of the brothers and has a sound knowledge of the marketplace. He excels in marketing, design, and advertising having graduated with an Honour's Degree in Marketing Management. Marketing is an important aspect of any business, but effective marketing drives consumers and sets you apart from everything else. It is imperative that you have someone that understands the theories and techniques so you can take advantage of the competitive edge.