Market Recap for January 2012 - Still Strong

I just reviewed the stats from the Toronto Real Estate Board. TREB reported that in January, there were 4,567 sales for the month in the Greater Toronto Area which is approx 9% more sales than reported during January 2011.

Mortgage rates as low as 2.99% for those quick enough to grab this short lived incentive, spurred on the bidding wars.  These rates are in effect until the end of February, 2012, however, some of the banks have now rescinded the availability until only until February 13th, 2012. These affordable rates has bolstered First Time Buyers dreams of owning a home.  The average selling price in January 2012 was $463,534 which is up almost 9% from the same time last year.

At the end of January there were only 11,009 homes for sale in the GTA. This number is very low compared to the 12,109 for sale at this time last year and represents a 9% DROP from last year. Contrary to what I was expecting, inventory is NOT climbing meaning the market is “Hotter” than I would have guessed. MORE sales and LESS inventory. In general terms, The Law of Supply and Demand has tilted even more in the favour of Sellers.

What does my crystal ball say? My Answer: It looks like the Spring Market may be a little “Hotter” than most people thought. We simply can’t get enough homes listed in the popular areas and price ranges to quench the thirst of the Buyers out there waiting to pounce on them. I do feel however that we will see more downward pressure in some higher price ranges and country properties.

If you have any questions about  The Toronto Real Estate Market Recap for January 2012, please feel free to contact me,  by email: susan@susanmacarz.com