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

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