The Toronto Real Estate Board reported 8,196 sales in the month of September 2009, up from 6,424 from September 2008 (up 10%). As we have said in the last few months, the story continues to revolve around the shortage of homes available for sale combined with the increase of buyers that is leading to an increase in price.
The month of September saw a HUGE decrease in the number of homes available for sale, just 15,894 active listings, down an incredible 42% from the previous year (27,373 in September 2008). This has resulted in a 10% increase in average price, from $368,549 to $406,877. This is the biggest jump that we have seen all year.
The graph below illustrates the average percentage price change compared to the same month between 2009 and 2008. In January, prices had dropped 8% from the previous year, and have steadily increased to the 10% increase we have seen in September. We have spoken to clients who purchased homes in January during the economic slow down, and they have already seen up to $70,000 increase in the value of their home in just 6 months.
Further, the average “days on market” home has fallen below 30 days for the first time since April 2008 meaning homes are selling as fast as they ever have. Homes in the GTA sold in just 27 days on average in the month of September, and even faster in certain pockets of Mississauga – the graph below shows the average days on market since January 2008 and this graph tells the story of how our market has changed dramatically over the past 20 months or so.
Finally, the year-to-date sales currently stand at 66,437, up 4.5% from the previous year. The board predicts that we will pass 80,000 sales by the end of the year, which will bring 2009 in line with some of the best years on record.
With home prices increasing so rapidly, now is an excellent time to get into the market. Similarly, if selling has crossed your mind – you may not get a better time to sell than right now.
Until next month,
Roy Bhandari (B.Comm Hons)
Signature Service/GMAC Real Estate