Toronto Real Estate Market Stayed Strong Through November
December 7, 2011 by Simon
The Toronto (i.e. GTA) real estate market had another strong month in November. Sales volume was up 11% to 7,092 units sold, and new listings for the month were up 14% to 9,786. However, that latter number masks an over-all decline in the number of active listings (15,551, down from 18,305 last year). Although the market did provide more supply relative to the same month last year, the general supply challenge remains in place.
Not surprisingly, the average sale price was also up. It is now $480,421, an increase of almost 10 per cent over the average in November 2010 of $437,494. The ever-rising price of houses in the GTA is a reflection of high demand and attractive interest rates. I’ll point out that I don’t credit everything to low interest rates; if Toronto wasn’t a great place to live, we wouldn’t have so many eager buyers, no matter how low interest rates went.
Understandably, the question of affordability comes up in conversation from time to time. Although I don’t usually quote directly from the TREB Market Watch report (which is the key source of my numbers), I found this comment to be particularly relevant, given how often we hear about ‘affordability’:
“Despite strong price growth this year, the housing market remains affordable in the GTA,” said Jason Mercer, TREB’s Senior Manager of Market Analysis. “The correct method of assessing affordability is to consider the share of the average household’s income that is dedicated to mortgage principal and interest, property taxes and utilities. Currently, this share remains in line with generally accepted lending guidelines. Given this positive affordability picture, average price growth is forecast to continue in 2012, albeit at a more moderate pace.”
So, prices are rising, but they remain affordable for the majority of people. Of course, some people ‘blame’ Realtors for rising prices. That’s reminiscent of the old ‘shoot the messenger’ folly, but since we are active participants in the market, I suppose that comes with the territory. Realtors don’t set the market; like water, it finds its own level. We certainly work to fulfill our obligation to get our sellers the most money possible for their homes; that’s the job. On the buyers’ side, we work within their budgets, and strive to follow their instructions and find them a great new home. Again, that’s the job – to sell houses. Ultimately, a rising market only helps Realtors as long as it remains rational, which I think it still is.
I’ll finish with a reminder that there are properties out there at every price level. As with everything else, you get what you pay for. However, if you are willing to make a trade-off regarding location, parking or size, you might be pleasantly surprised at the compromise. Feel free to get in touch with me at any time to review your options.
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Toronto Real Estate Market Stayed Strong Through November
December 7, 2011 by Simon
The Toronto (i.e. GTA) real estate market had another strong month in November. Sales volume was up 11% to 7,092 units sold, and new listings for the month were up 14% to 9,786. However, that latter number masks an over-all decline in the number of active listings (15,551, down from 18,305 last year). Although the market did provide more supply relative to the same month last year, the general supply challenge remains in place.
Not surprisingly, the average sale price was also up. It is now $480,421, an increase of almost 10 per cent over the average in November 2010 of $437,494. The ever-rising price of houses in the GTA is a reflection of high demand and attractive interest rates. I’ll point out that I don’t credit everything to low interest rates; if Toronto wasn’t a great place to live, we wouldn’t have so many eager buyers, no matter how low interest rates went.
Understandably, the question of affordability comes up in conversation from time to time. Although I don’t usually quote directly from the TREB Market Watch report (which is the key source of my numbers), I found this comment to be particularly relevant, given how often we hear about ‘affordability’:
“Despite strong price growth this year, the housing market remains affordable in the GTA,” said Jason Mercer, TREB’s Senior Manager of Market Analysis. “The correct method of assessing affordability is to consider the share of the average household’s income that is dedicated to mortgage principal and interest, property taxes and utilities. Currently, this share remains in line with generally accepted lending guidelines. Given this positive affordability picture, average price growth is forecast to continue in 2012, albeit at a more moderate pace.”
So, prices are rising, but they remain affordable for the majority of people. Of course, some people ‘blame’ Realtors for rising prices. That’s reminiscent of the old ‘shoot the messenger’ folly, but since we are active participants in the market, I suppose that comes with the territory. Realtors don’t set the market; like water, it finds its own level. We certainly work to fulfill our obligation to get our sellers the most money possible for their homes; that’s the job. On the buyers’ side, we work within their budgets, and strive to follow their instructions and find them a great new home. Again, that’s the job – to sell houses. Ultimately, a rising market only helps Realtors as long as it remains rational, which I think it still is.
I’ll finish with a reminder that there are properties out there at every price level. As with everything else, you get what you pay for. However, if you are willing to make a trade-off regarding location, parking or size, you might be pleasantly surprised at the compromise. Feel free to get in touch with me at any time to review your options.
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Posted in Affordability, Housing, Interest Rates, Market Commentary | Tagged Affordability, First Time Buyer, Interest Rates, Market Commentary, Mortgage rates, Simon Milberry, Toronto Real Estate Market | Leave a Comment
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