An Update on Toronto's Real Estate Market
John Pasalis in Toronto Real Estate News
After a slight decline in new listings in August, we saw new listings climb 19% over 2007 levels in September and 6% over the volume we saw in 2006.
The total inventory on the market was 3.8% higher in September over 2006 levels and 28% higher than last year.
Sales in the Greater Toronto Area dropped below 2007 and 2006 levels in both August and September.
The sales-to-inventory ratio dipped to 23% in September. The general consensus among most industry watchers is that a balanced market occurs when sales-to-inventory levels are between the 15% and 25% range. A ratio above 25% indicates a market that favours sellers and anything below 15% typically favours buyers. This is just the third time since 2000 that we've seen the sales-to-inventory ratio drop below the 25% threshold.
Following the decline in prices last month, most people want to know where prices are heading in Toronto's real estate market. I'll follow up soon with a more detailed analysis of real estate prices for both the GTA and the city of Toronto.
John Pasalis is a sales associate at Prudential Properties Plus in Toronto and a founder of Realosophy. Email John
The GTA market is headed for a major decline as the economy stalls and goes into a recessiopn I am expecting a minimum 20-30% decline over the next 12 mo.
The speculation in GTA was lower then the west coast but economic realities will drive the decline. Especially when ontarios largest customer to the south is going into a long slump.
If you a buyer wait till summer 2009. If you are an investor or someone uncertain about your job and had put 10% or less downpayment please sell cut your losses and sell as it will get worse.
Posted by: Sean | October 08, 2008 at 09:30 PM
A month ago I was a bit more optimistic about the balancing of the market and all, but with all the U.S. bubble talk I thought that someone would take action and help prevent what happened now in the world markets. It was all looking so good with Canada being a beacon of economical stability. But neither would I be too pessimistic yet. The economy is still holding it´s own against all the odds and a balanced market is way better than no market. Investors, O.K. sell, but some of my friends who know their way around told me to just stay calm and weather the storm.
I still hope for the best.
Jill
Posted by: Jill Stewart | October 10, 2008 at 07:36 AM