John Pasalis in Toronto Real Estate News
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.
With sales clearly on the rise and bidding wars on many Toronto houses are the economists right when they say that the worst of Canada’s real estate slump is over?
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John Pasalis is the Broker owner of Realosophy Realty Inc in Toronto. Email John
June 17, 2009
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