How's the Market in Toronto? (July 2012)
By Brian Madigan LL.B.
You might wonder about the real estate market in Toronto. That’s the big test of the economy!
If the Toronto real estate market is going well, then, so is everything else.
Prices have been escalating over the past few years and the market of 2012 (January to June) was no exception.
But, prices are just one measure, the real strength of the market is measured in volume, and that means the total number of sales.
Let’s have a look at the sales for the last several years:
2012 ~ 51,911
2011 ~ 49,142
2010 ~ 51,517
2009 ~ 41,612
2008 ~ 44,494
2007 ~ 51,512
2006 ~ 46,575
2005 ~ 45,424
The averages are as follows:
8 year average ~ 47,773
5 year average ~ 47,735
3 year average ~ 50,857
What does this really mean? Effectively, the 3 year average number of sales is running at 6.46% higher than the 8 year average. That means more sales, more interest in real estate and more transactions overall. If you want to sell, you should be able to, there’s lots of buyers out there.
If we simply go year to year, sometimes it is easy to draw erroroneous conclusions.
We are not look at full years, just the months of January to June. However, that’s the hot part of the cycle. Have a look at 2009, with the lowest number of transactions. That was the time the auto industry was going bankrupt. The stock market had crashed in the Fall of 2008.
Also, don’t forget these are just the resale housing numbers. New home sales direct from builders are not included.
One thing is certainly clear and that is that there is a very healthy and strong demand for Toronto and GTA based real estate.
Brian Madigan LL.B., Broker is an author and commentator on real estate matters.