In August 2008 we ran a poll on our blog asking readers if Toronto would be spared a major real estate correction. The Bears won the poll with 73% answering “Smart home owners should sell their houses now and start renting”.
A lot has happened since last August. From October 2008 to February 2009, the peak of the financial crisis, real estate sales plummeted by almost 50% in Toronto with prices declining by as much as 10%. A period with too many sellers and not enough buyers is very characteristic of a declining real estate market.
Since then we’ve seen a dramatic turnaround in the Toronto market. We moved from a strong Buyer’s market in the winter to a strong Seller’s market in the spring. Today, the demand from buyers outweighs the supply of homes from sellers and as a result we are seeing bidding wars for many Toronto homes.
In May 2009, real estate sales increased by 2% over the previous year, the first increase since December 2007. I expect to see a double digit increase in sales for the first half of June 2009.
June 17, 2009Market |