Marketwatch

Market Watch - November 2009

Housing Market has Clearly Turned a Corner

Once again we saw record-setting sales numbers for the month of October. This brings the year-to-date sales close to, or even higher than, the same period last year. Strong sales growth has occurred across many property classes from price ranges that would attract first-time buyers to luxury properties selling for over one million dollars. Listing inventory remained at a low level, and combined with brisk sales, indicates that we are still in a strong sellers’ market.

“After a short dip in the winter, the average home price has rebounded because sales have been high relative to listings,” according to Jason Mercer, TREB’s (Toronto Real Estate Board) Senior Manager of Market Analysis. “Watch for listings to rebound in 2010 as homeowners react to the strong sales and price growth experienced in the latter half of this year.”

This level of demand combined with a steady decline in inventory levels, particularly in the cities, may lead to some upward pressure on prices in the months ahead although nothing like what we experienced in 2007. We are anticipating that 2009 will now come in as the second best year for sales on record only behind 2007.

Below is a brief summary of sales activities in some areas across the country:

Ontario – Strong Growth in October Housing Sales

Toronto, November 4, 2009 - In October 2009, Greater Toronto REALTORS® reported 8,476 sales, up 64% from October 2008. The average price for October transactions was $423,559—up by 20% compared to the same month last year.

“Strong sales growth has occurred across many property classes—from price ranges that would attract first-time buyers to luxury properties selling for over one million dollars,” said TREB President Tom Lebour. “The highest rate of sales growth in October was experienced for properties selling for over $750,000 dollars. In contrast, luxury home sales declined at an above-average rate last year.”

Year-to-date sales, at 74,721, were up 9% compared to the first ten months of 2008. Average price, at $392,264 was up by almost 3%.

Ottawa, November 4, 2009 - Members of the Ottawa Real Estate Board sold 1,202 residential properties in October compared with 964 in October 2008, an increase of 24.7%. Of those sales, 270 were in the condominium property class, while 932 were in the residential property class.

“Once again we saw record-setting sales numbers for the month of October. This brings our sales year-to-date to four percentage points higher than the same period last year. Ottawa’s resale market has been buoyed by buyers taking advantage of low interest rates,” said Board President Rick Snell. “Listing inventory remains at a low level, and combined with brisk sales, indicates that we are still in a strong sellers’ market here in the capital,” he added.

The average sale price of residential properties, including condominiums, sold in October in the Ottawa area was $318,655, an increase of 13.6% over October 2008. The average sale price for a condominium-class property was $232,046, an increase of 14.6% over October 2008. The average sale price of a residential-class property was $343,745, an increase of 13.3% over October 2008.

Footnote: all information is supplied by TREB