11% Increase in Sales Compared to Last Year

I just reviewed the statistics from the Toronto Real Estate Board. TREB reported that in November, there were 7,092 sales for the month in the Greater Toronto Area. November 2010 there were 6,384 sales so we have experienced an approx 11% INCREASE in the number of sales compared to last year.

The real news is that inventory levels continue to decrease. At the end of November there were only 15,551 homes for sale on the Toronto Real Estate Board, compared to 18,305 at the end of November 2010. So inventory is shrinking and sales numbers are INCREASING. Despite traditional thinking, December will be an excellent opportunity for anyone to list and sell their home. There is still a back-log of buyers out there looking for a home, with fewer choices right now. 

Question: “What will happen to the market in the new year?” My Answer: Continued moderate increases in prices in 2012 and robust sales activity. One unknown is, can challenges in the global economy (Europe is a big concern!) hurt our real estate market. There are many opinions on this. The leading indicators of any downspin in our real estate market would be a significant downturn in our local economy and increases in interest rates. We seem to be ok with that for the time being and our market should continue to be a safe haven for now.  Our mortgage interest rates are still considered to be very favorable with many new first time homebuyers opting to use favorable variable mortgage rates when buying their new home.  There still seems to be multiple offers that are prevalent in  the Greater Toronto Real Estate market.  Resale properties are still seeing high sales figures as the inventory level is low, and Buyers are trying to outbid each other in order to be successful in finally owning a new home.  Where will this lead in 2012?  Indication is that the Real Estate market will continue in this path for at least the next 6 months…but it depends on the world economy and how well Canada fares in relation to all the other countries economic fiascos.

If you have any questions about  The Toronto Real Estate Market Recap for November, 2011, please feel free to contact me,  by email: susan@susanmacarz.com