Good morning everyone, I hope all of you are keeping well;
GTA REALTORS® RELEASE MID-MONTH RESALE FIGURES (Read the attachment)
TORONTO, October 16, 2012 – Greater Toronto Area REALTORS® reported 2,961 sales through the TorontoMLS system during the first 14 days of October 2012. The number of transactions was down by 10.5 per cent compared to the same period in 2011. New listings were up by 5.5 per cent year-over-year to 6,505. Average sales price was up almost 6% versus same time period last year! ($501,146). Average detach sale price in the City of Toronto (not GTA Average) is $774, 595!
Rental Market (see attached)
TORONTO, October 16, 2012 – Greater Toronto Area REALTORS® reported 5,241 rental transactions involving condominium apartments through the TorontoMLS system in the third quarter of 2012. This result represented a three per cent increase compared to the third quarter of 2011. Over the same time period, the number of condominium apartments listed for rent increased by 18 per cent annually to 8,845.
What’s going on in the GTA? (my own observations)
- Sales are indeed slowing down (prices remain stable and in most cases slightly increasing for freehold properties)
- The new stricter mortgage rule changes (which I personally agree with) have, at least temporarily, taken some first time buyers out of the market and thus slightly less demand for entry level homes. Sellers looking to upsize are having to wait a little longer to
- Supply of “quality listings” is still tight. Months of inventory levels are at about 2.4 months in which historically we have still seen 5-6% growth
- Low rise home supplies are at decades low (2.2 months’ of inventory). High Rise home supply are near a decade high (3.7 months’ of inventory) with many new buildings having been completed and come onto market. TREB STATS Oct 16/2012
- Bidding wars are still taking place for choice homes in choice neighbourhoods but at a slower pace.
- Many homes that have been marketed to attract multiple offers on an “Offer Date” are not necessarily selling on such a date. It seems to be a 50/50 split of successful sales.
- One home I tracked for a client this week sold for 54k over asking having attracted 5 offers on the offer night
- Another 3 homes that I was tracking for clients remain unsold after offer dates have come and gone. In some cases they were re-listed at a slightly higher price and in others they remained listed at the same offer price.
- Buyers are becoming more reluctant in participating in bidding wars.
- Seasonality is (shorter days and colder weather) is beginning to kick in as well.
As expected, the Bank of Canada left the prime rate unchanged at 1%. Bank prime remains at 3%.
Below are the highlights of the Bank of Canada Announcement:
- Although economic expansion in the US is progressing at a gradual pace and Europe is in recession there are signs of stabilization
- The Canadian economy is expected to pick up and return to full capacity by the end of 2013
- Inflation is expected to increase gradually and return to target by the end of 2013
- Over time, some modest withdrawal of monetary policy stimulus will likely be required
The next Bank of Canada Announcement is scheduled for December 4th, 2012
Have a wonderful weekend, Anthony