IT’S OFFICIAL

MILTON IS THE HOTTEST MARKET IN THE GTA!!!

REAL ESTATE MARKET SHOWING NO SIGNS OF COOLING OFF!!!

After reviewing the latest sales figures from the Toronto Real Estate Board, so far in June 2011 there have been 9,398 sales for the month. We should end up at approx 10,000 in total. June 2010 there were 8,422 sales so we have experienced an approx 18% INCREASE in the number of sales compared to last year.

Currently there are only 18,435 homes for sale on the Toronto Real Estate Board, compared to 23,923 at the end of June 2010. There are almost 1,000 active listings set to expire in the next 3 days so the number for sale will be probably around 17,750. That’s REALLY LOW and represents about a 30% drop! Think about this for a minute. The number of sales is increasing and the number of homes for sale is decreasing. Currently there is less than a 2 month supply of homes for sale in the Toronto Area.

In little old town of Milton, the market is even hotter. IT IS NOW OFFICIAL. Milton is the hottest market in the GTA! There are currently only 201 homes for sale and there will end up being about 180 sales reported in June. It’s almost down to one month’s supply. I don’t think things have ever been more tilted in the favour of a seller than it is in Milton right now. That’s hotter than the hottest areas of Toronto like The Beach, Bloor West Village & Lawrence Park.  So, where is Milton?  It is located just north of the Town of Oakville, that is west of Toronto.  It is about a 30-45 minute drive west of Toronto via Highway 401.  As homes are becoming more expensive in the Greater Toronto Area, people are considering living in the surrounding western communities such as Mississauga, Brampton, Port Credit, Oakville and now, Milton.

So the question remains …. what will happen to the market? My prediction is that prices will continue to increase slightly until at least the end of the year. Below are 4 situations that could reverse this trend, cause the market to cool down and prices to level off or drop:

1. The number of Buyers (the number of sales) will need to drop. That surely doesn’t seem to be the case.
2. Mortgage rates will need to go UP significantly! Nobody is predicting this any time soon.
3. Inventory levels will need to go UP significantly. They keep dropping at an alarming rate and there’s a surprisingly low number of new listings coming on the market.
4. Our national or local economy will need to SUFFER significantly. The economy in Canada and particularly in the GTA seems to be getting better. Despite the scary messages from political parties wanting to get into power, our economy is still thriving. 

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