TORONTO Market Watch - December 2009

Home Sales Continue at Torrid Pace

Both sales and the value of sales have exceeded our expectations this year. We anticipated sales levels would be the same as last year, however, properties sold so far have already exceeded last year’s sales with only a month to go. The dramatic increase in sales can be explained by last year’s sales being affected by the crisis in the financial markets.

“The market remains rock steady,” said Charlie Ponde, President of the REALTORS® Association of Edmonton. “Prices vary from month to month within a small range and with a slow gradual upward trend. Buyers have confidence in this market and REALTORS® are prepared to match their needs with the perfect housing option.”

"Very strong annual growth rates for sales and average prices should be expected through the first quarter of 2010 because we will be comparing the current recovery to the housing market decline experienced last winter,” according to Jason Mercer, TREB’s Senior Manager of Market Analysis. “As we move into the spring, growth rates will move to more sustainable levels. Watch for listings to rebound in 2010 as home owners react to the strong sales and price growth experienced in the latter half of this year.” Mercer added.

Below is a brief summary of sales activities in some areas across the country:

Ontario – Home sales remain strong in November

Toronto, December 3, 2009

– Greater Toronto REALTORS® reported 7,446 sales in November – slightly more than double the November 2008 result when GTA home sales had dipped markedly due to the economic downturn. Year-to-date sales were up 14% compared to the first 11 months of 2008.

“This year in the GTA, home sales will be in line with the healthy levels experienced between 2004 and 2006,” said Toronto Real Estate Board President Tom Lebour. “Increased resale home transactions in the Toronto area and country-wide played a key role in pushing the Canadian economy out of recession in the third quarter.”

The average price for November transactions was up 14% year-over-year to $418,460. The average price year-to-date was up 4% to $394,464. In November, the median price was $353,800, up from the $312,250 recorded during November of 2008.