I have no complaints about 2010. It was a great year to get started in the real estate business, and a great year for the real estate market all around. TREB reports that there were 86,170 sales of single family dwellings in 2010, down only slightly from the 87,308 sales in 2009. Average selling price has increased to $431,463. Who can complain about that???
As a new agent, I spent much of 2010 learning how to negotiate in a multiple offer situation, getting into my groove with first-time buyers, dealing with other more experienced agents, and becoming a young business professional. It has been a huge learning curve and I loved (almost) every minute of it!
Thinking back, I see the past year to be one of change. Mortgage rates have been historically low, so in the first few months of the year buyers flooded the market and caused bidding wars. Transitioning into the fall months, the market changed slightly - we experienced a more balanced market where prices weren't as inflated and it took homes longer to sell.
I've met a lot of people I wouldn't have had the pleasure of meeting otherwise, and realized one thing: I love this business! So if you are thinking of buying or selling a home in the next 60-90 days... send us an email or call us direct. 2010 has been a year of ups and slightly smaller downs, and we'd love to help you through the process.
Greater Toronto REALTORS® reported 2,509 sales through the Multiple Listing Service® (MLS®) during the first two weeks of December 2010.
This represented a 19 per cent decrease compared to the 3,079 sales recorded during the same period in December 2009. Year-to-date sales amounted to 84,316 – down one per cent from the 2009 total of 84,888.
“While off the 2009 record, the level of December transactions remains strong from a historic perspective. The number of transactions in 2010 will be the third highest on record,” said Toronto Real Estate Board President Bill Johnston.
The average price for December mid-month transactions was $435,225 – up three per cent compared to the average of $423,103 recorded during the first 14 days of December 2009.
“Market conditions remain tight enough to support moderate growth in the average selling price. Expect the three per cent annual rate of growth reported for the first two weeks of December to be the norm in 2011,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.
** Provided By TREB - December 16, 2010
Although improved economic fundamentals will have a positive impact on Canadian housing markets moving forward, the forecast for residential real estate sales remains static in most major centres in 2011, according to a report released today by RE/MAX.
The RE/MAX Housing Market Outlook 2011, examining trends and developments in 26 major centres across the country, found that home-buying activity in 2010 fell short of 2009 levels. Housing values, however, continued to climb, with virtually all areas reporting an upswing in average price, ranging from just under one per cent to 15 per cent this year. Lower inventory levels in many markets offset the effects of diminished demand, propping-up price in almost every instance. Kitchener-Waterloo, Quebec City, and St. John’s saw the greatest increases in average price this year, while Eastern Canadian markets including Hamilton-Burlington, Sudbury, Windsor, Moncton and Prince Edward Island were the only markets that bucked the downward trending in home sales in 2010.
By year-end, approximately 441,000 homes are expected to change hands nationally, a five per cent decline from the 465,251 sales reported in 2009. Housing values are forecast to continue to climb, up an estimated seven per cent to $340,000, compared with $320,333 one year earlier.
“In terms of resale housing activity, what many are talking about as the new normal is actually a return
to the traditional real estate cycle,” says Michael Polzler, Executive Vice President, Regional Director,
RE/MAX Ontario-Atlantic Canada. “The past decade was truly unprecedented—never before have we experienced a run up that was as strong or lasted as long. As we have digressed from the typical
pattern, people have forgotten what the usual healthy cycle looks like, but all the hallmarks are there.
Ample inventory levels, steady demand, and moderate growth, both in terms of sales and prices, will characterize the market in 2011. While the pace may appear lackluster in comparison to what we’ve grown accustomed to, it underscores the principles of real estate 101: The market is cyclical. All boats rise and fall with the tide.”
Greater stability is expected to characterize the markets in 2011, with Canadian housing sales predicted to mirror 2010 levels at 441,000 next year, while average price is forecast to escalate three per cent to $350,000 by year-end 2011.
“Looking forward, we see steady improvement in provincial and local economies—which will bode well for housing markets across the board,” says Elton Ash, Regional Executive Vice President, RE/MAX of Western Canada. “The relentless drive in the market reminiscent of years past will be gone and instead, we can expect to see more normal, balanced market conditions, with buyers maintaining a slight edge.”
** Provided By: RE/MAX Ontario, December 7, 2010
Greater Toronto REALTORS reported 6,510 existing home sales in November – down 13 per cent from 7,446 sales in November 2009. New listings were also down 13 per cent annually to 8,642.
On a month-over-month basis, the seasonally adjusted annual rate of sales increased for the fourth straight month to 88,100. This rate was substantially higher than the July low of 67,900.
"The GTA resale market has tightened since the summer. Healthy market conditions continued to support growth in the average selling price," said Toronto Real Estate Board President Bill Johnston.
“Sales through the first 11 months of the year were down only marginally compared to the same period in 2009. We remain on track for one of the best years on record under the current TREB market area,” continued Johnston.
The average selling price for November transactions was $438,030 - up five per cent compared to November 2009.
"The average selling price in the GTA is affordable. A household earning the average income can comfortably cover the mortgage payments on an average priced home. Expect the average selling price to grow at a moderate pace over the next year," said Jason Mercer, TREB’s Senior Manager of Market Analysis.
** Provided By: Toronto Real Estate Board, December 3, 2010
Concerned that homebuyers are uncertain about the Harmonized Sales Tax’s (HST) applicability on real estate purchases, Greater
Toronto REALTORS® are reaching out to consumers to eliminate misconceptions.
Using social media channels and an ongoing series of newspaper columns, the Toronto Real Estate Board (TREB) is conveying to consumers that the HST does
not apply to the purchase price of resale homes.
“Although the HST applies to newly constructed homes and professional services associated with real estate transactions, the purchase price of a resale home is
exempt from this tax,” said TREB President Bill Johnston.
Since resale housing was never subject to the Provincial Sales Tax (PST) or the federal Goods and Services Tax (GST), it continues to be exempt from the new
Conversely, newly constructed homes were previously subject to the GST, meaning that the HST now applies. The provincial government however, provides
a rebate of 75 per cent of the PST on the first $400,000 on new homes, to a maximum of $24,000.
“When considering the purchase of any type of home, it is important to budget for additional costs, like the Land Transfer Tax and property taxes. Fortunately
though, the purchase price of a resale home is one area of relief for taxpayers and recognizing that a home is many people’s single largest investment, this
exemption is an important consideration.”
** Toronto Real Estate Board, October 5, 2010