Final numbers are in for December, and thus for 2010! It was a great year
for homeowners, as values appreciated 9% on average. As we said throughout
the year, the negativity created by the media about home ownership was just
a fabrication of facts. At the beginning of 2010, we predicted unit sales
to hold tough and projected 2010 sales to fall about 2%. Looking back,
sales in units were down slightly (but just by 1%) over a banner year in
2009. We had predicted a modest 5-6% increase in price, and with the hot
market in the first four months, we saw an average increase of 9% for the
year. We had also predicted that interest rates would remain low, however
rise slightly from their historically low rates. We saw this take place
late in the summer months. What we have learned is that the general public has started to tune out the
negativity in the media. Mid-year speculation of prices dropping by upwards
of 30% are laughable now, but instilled fear throughout the summer and into
fall. Low interest rates continued to fuel the market. The strong Canadian
economy, coupled with a strong dollar had consumer confidence at a high. For 2011, our projections will be very similar to 2010. Sales will hold
strong, and with a shortage of inventory on the market, prices will climb
slightly throughout the winter months. We are in a sellers' market right
now and will continue to be until inventory shows a supply of two to three
months. As a buyer, you want to scoop up the "good" properties, or be left
scrambling for the "average" ones that will flood the market in the spring.
A common mistake buyers make is trying to time the market. Real Estate is
all about the amount of time you spend IN the market, now about trying to
TIME the market. Land will always appreciate, and normal appreciation is a
given. When you get artificial appreciation which is around 25% - 50%,
similar to what we say five or six years ago in some American markets, that
is where you could be faced with bubbles and other problems. Trying to time
the market will have you renting for the long haul and cost you more money
in terms of opportunity costs, as properties continue to appreciate without
you. Attached is the final Market Watch for 2010 and shows how the Greater
Toronto Area did in 2010. For a specific analysis of your home, street, or
neighbourhood, please call me at 416-985-5426 and I'll be happy to provide
you with this. Anytime you have any questions or concerns with stories in
the media, please call and we will provide you with the true story about
property values and the Real Estate market. Regards, Asif TORONTO, ONTARIO--(Marketwire - Jan. 6, 2011) - Greater Toronto REALTORS(r)
reported 4,395 existing home sales for the month of December, bringing the
2010 total to 86,170 - down by one per cent compared to 2009. "Market conditions were anything but uniform in 2010. We went from
super-charged sales activity during the first four months of the year, to a
marked drop-off in transactions in the summer and then in the fall saw sales
climb back to levels that are sustainable over the longer term," said TREB
President Bill Johnston. "New Federal Government-mandated mortgage lending guidelines, higher
borrowing costs and misconceptions about the HST caused a pause in home
buying in the summer. As it became clear that the HST was not applicable to
the sale price of an existing home and buyers realized that home ownership
remained affordable, market conditions improved," continued Johnston. The average home selling price in 2010 was $431,463 - up nine per cent in
comparison to the 2009 average selling price of $395,460. In December, the
average annual rate of price growth was five per cent. "At the outset of 2010, we were experiencing annual rates of price growth at
or near 20 per cent. This was the result of extremely tight market
conditions coupled with the fact that we were comparing prices to the trough
of the recession at the beginning of 2009," said Jason Mercer, TREB's Senior
Manager of Market Analysis. "Balanced market conditions in the second half of 2010 resulted in more
moderate home price appreciation," continued Mercer. "Expect the average
selling price to grow at or below five per cent in 2011. With this type of
growth, mortgage carrying costs for the average priced home in the GTA will
remain affordable for a household earning an average income." Home sales in the GTA were spread across a number of different housing types
in 2010. Detached homes accounted for 49 per cent of total sales.
Condominium apartments accounted for an additional 25 per cent per cent of
sales. Other housing types including townhomes and semi-detached houses
accounted for the final 26 per cent. In some areas like TREB's central
districts the mix was quite different, with condominium apartments
accounting for 61 per cent of total sales. "Ownership housing is available in a diversity of types and price points
across the GTA, allowing plenty of choice for first time buyers and
experienced home buyers alike. This housing diversity is one factor that
continues to make the GTA a popular choice for households and businesses,"
concluded Johnston. WATCH Market Watch video at: www.youtube.com/TREBChannel.
Summary Of December Sales And Average Price December
2010 2009
Sales Average Price Sales Average Price
City of Toronto ("416") 1,856 $463,416 2,403 $441,607
Rest of GTA ("905") 2,539 $412,403 3,138 $389,205
GTA 4,395 $433,946 5,541 $411,931
Source: Toronto Real Estate Board
Sales & Average Price By Home Type December-2010
Sales Average Price
416 905 Total 416 905 Total Detached 576 1,395 1,971 679,631 503,841 555,475
Yr./Yr. % Change -25% -17% -19% 6% 6% 5%
Semi-Detached 169 265 434 471,167 337,423 389,503
Yr./Yr. % Change -33% -23% -27% 6% 2% 3%
Townhouse 197 445 642 397,638 309,402 336,477
Yr./Yr. % Change -17% -23% -22% 5% 5% 6%
Condo Apartment 892 377 1,269 342,009 251,578 315,143
Yr./Yr. % Change -20% -13% -18% 6% 4% 5%
Source: Toronto Real Estate Board
Greater Toronto REALTORS(r) are passionate about their work. They adhere to
a strict Code of Ethics and share a state-of-the-art Multiple Listing
Service. Serving over 31,000 Members in the Greater Toronto Area, the
Toronto Real Estate Board is Canada's largest real estate board. Asif Khan, Realtor Re/Max All-Stars Realty Inc. Google me: Asif Khan Re/Max Follow me on Twitter Become a Fan on Facebook
for homeowners, as values appreciated 9% on average. As we said throughout
the year, the negativity created by the media about home ownership was just
a fabrication of facts. At the beginning of 2010, we predicted unit sales
to hold tough and projected 2010 sales to fall about 2%. Looking back,
sales in units were down slightly (but just by 1%) over a banner year in
2009. We had predicted a modest 5-6% increase in price, and with the hot
market in the first four months, we saw an average increase of 9% for the
year. We had also predicted that interest rates would remain low, however
rise slightly from their historically low rates. We saw this take place
late in the summer months. What we have learned is that the general public has started to tune out the
negativity in the media. Mid-year speculation of prices dropping by upwards
of 30% are laughable now, but instilled fear throughout the summer and into
fall. Low interest rates continued to fuel the market. The strong Canadian
economy, coupled with a strong dollar had consumer confidence at a high. For 2011, our projections will be very similar to 2010. Sales will hold
strong, and with a shortage of inventory on the market, prices will climb
slightly throughout the winter months. We are in a sellers' market right
now and will continue to be until inventory shows a supply of two to three
months. As a buyer, you want to scoop up the "good" properties, or be left
scrambling for the "average" ones that will flood the market in the spring.
A common mistake buyers make is trying to time the market. Real Estate is
all about the amount of time you spend IN the market, now about trying to
TIME the market. Land will always appreciate, and normal appreciation is a
given. When you get artificial appreciation which is around 25% - 50%,
similar to what we say five or six years ago in some American markets, that
is where you could be faced with bubbles and other problems. Trying to time
the market will have you renting for the long haul and cost you more money
in terms of opportunity costs, as properties continue to appreciate without
you. Attached is the final Market Watch for 2010 and shows how the Greater
Toronto Area did in 2010. For a specific analysis of your home, street, or
neighbourhood, please call me at 416-985-5426 and I'll be happy to provide
you with this. Anytime you have any questions or concerns with stories in
the media, please call and we will provide you with the true story about
property values and the Real Estate market. Regards, Asif TORONTO, ONTARIO--(Marketwire - Jan. 6, 2011) - Greater Toronto REALTORS(r)
reported 4,395 existing home sales for the month of December, bringing the
2010 total to 86,170 - down by one per cent compared to 2009. "Market conditions were anything but uniform in 2010. We went from
super-charged sales activity during the first four months of the year, to a
marked drop-off in transactions in the summer and then in the fall saw sales
climb back to levels that are sustainable over the longer term," said TREB
President Bill Johnston. "New Federal Government-mandated mortgage lending guidelines, higher
borrowing costs and misconceptions about the HST caused a pause in home
buying in the summer. As it became clear that the HST was not applicable to
the sale price of an existing home and buyers realized that home ownership
remained affordable, market conditions improved," continued Johnston. The average home selling price in 2010 was $431,463 - up nine per cent in
comparison to the 2009 average selling price of $395,460. In December, the
average annual rate of price growth was five per cent. "At the outset of 2010, we were experiencing annual rates of price growth at
or near 20 per cent. This was the result of extremely tight market
conditions coupled with the fact that we were comparing prices to the trough
of the recession at the beginning of 2009," said Jason Mercer, TREB's Senior
Manager of Market Analysis. "Balanced market conditions in the second half of 2010 resulted in more
moderate home price appreciation," continued Mercer. "Expect the average
selling price to grow at or below five per cent in 2011. With this type of
growth, mortgage carrying costs for the average priced home in the GTA will
remain affordable for a household earning an average income." Home sales in the GTA were spread across a number of different housing types
in 2010. Detached homes accounted for 49 per cent of total sales.
Condominium apartments accounted for an additional 25 per cent per cent of
sales. Other housing types including townhomes and semi-detached houses
accounted for the final 26 per cent. In some areas like TREB's central
districts the mix was quite different, with condominium apartments
accounting for 61 per cent of total sales. "Ownership housing is available in a diversity of types and price points
across the GTA, allowing plenty of choice for first time buyers and
experienced home buyers alike. This housing diversity is one factor that
continues to make the GTA a popular choice for households and businesses,"
concluded Johnston. WATCH Market Watch video at: www.youtube.com/TREBChannel.
Summary Of December Sales And Average Price December
2010 2009
Sales Average Price Sales Average Price
City of Toronto ("416") 1,856 $463,416 2,403 $441,607
Rest of GTA ("905") 2,539 $412,403 3,138 $389,205
GTA 4,395 $433,946 5,541 $411,931
Source: Toronto Real Estate Board
Sales & Average Price By Home Type December-2010
Sales Average Price
416 905 Total 416 905 Total Detached 576 1,395 1,971 679,631 503,841 555,475
Yr./Yr. % Change -25% -17% -19% 6% 6% 5%
Semi-Detached 169 265 434 471,167 337,423 389,503
Yr./Yr. % Change -33% -23% -27% 6% 2% 3%
Townhouse 197 445 642 397,638 309,402 336,477
Yr./Yr. % Change -17% -23% -22% 5% 5% 6%
Condo Apartment 892 377 1,269 342,009 251,578 315,143
Yr./Yr. % Change -20% -13% -18% 6% 4% 5%
Source: Toronto Real Estate Board
Greater Toronto REALTORS(r) are passionate about their work. They adhere to
a strict Code of Ethics and share a state-of-the-art Multiple Listing
Service. Serving over 31,000 Members in the Greater Toronto Area, the
Toronto Real Estate Board is Canada's largest real estate board. Asif Khan, Realtor Re/Max All-Stars Realty Inc. Google me: Asif Khan Re/Max Follow me on Twitter Become a Fan on Facebook