Under normal circumstances, a 26% decline in real estate sales is not something to be excited about. But these are not normal circumstances and with sales down by roughly 50% for each of the past three months, a 26% decline in sales for the first half of February is a very positive sign. It is a big change from the trend we have been seeing and a sign that more buyers jumped into the housing market.
Here is the Toronto Real Estate Board’s press release.
TORONTO, February 19, 2009 – Greater Toronto REALTORS® reported 2,044 sales through the first 14 days of February, compared to 2,775 sales reported during the same period in 2008.
“While sales have been lower, the housing sector remains one of the pillars of the GTA
economy,” said TREB President Maureen O’Neill. “Each existing home transaction generates, on average, more than $33,000 in spin-off spending on renovations and other housing-related items. This spin-off spending translates into jobs.”
“The City of Toronto needs to do its part to encourage homeownership by reducing the tax burden on existing and potential home owners,” said TREB President Maureen O’Neill. “To this end, Greater Toronto REALTORS® are calling on the City to roll back the municipal land transfer tax. We presented our views to the City’s Budget Committee yesterday.”
The average home price in the GTA was $364,748 compared to $385,735 in mid-month
February last year.
“It is interesting to note that while the average price was down, the annual rate of price decline slowed compared to the previous four months,” according to Jason Mercer, the Toronto Real Estate Board’s Senior Manager of Market Analysis. “If this trend continues into the spring, it could point towards average home prices leveling off between $360,000 and $370,000.”
February 19, 2009Market |