TORONTO – March 3, 2011
Greater Toronto REALTORS® reported 6,266 transactions through the Toronto MLS® system in February 2011. This result was 14 per cent lower than the record sales reported in February 2010. While not representing a record, February 2011 sales were 50 per cent higher than the number reported in February 2009 during the recession and slightly higher than the average February sales over the previous ten years. “Continued improvement in the GTA economy, including growth in jobs and incomes and a declining unemployment rate, has kept the demand for ownership housing strong,” said Toronto Real Estate Board (TREB) President Bill Johnston.
The average selling price for February 2011 transactions was $454,423, which was more than five per cent higher than the average selling price reported in February 2010.
“Market conditions remain quite tight in the GTA. There is enough competition between
home buyers to promote continued price growth,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.
Jonathan’s Opinion
If you recall in my January Market Watch Report, I stated the main reason that sales are down is not because the market is slowing down, but because there are fewer listings. This is still the case…there are not a lot of properties on the market to choose from. I also mentioned that ever since the announcement of the new mortgage rules, the amount of demand has increased because buyers want to purchase a home before these rules come into effect.
This trend is still alive and will continue until the end of March. Furthermore, take a look at sales vs price. Although sales are down, the average price is up. This is a strong indicator of a “topping” market. Please understand that I do not mean that the market will collapse after March or April, but I believe it will cool down. Listings will increase (as they always do in the spring), sales will fall as fewer buyers will rush in to purchase a home, and as a consequence, prices will remain stable (we will not see double digit percent increases as we have this last year and a half).
Therefore, if you want to sell your house fast, and for top dollar, you still have some time!!
