Despite the media and the general feeling of being in a recession, housing sales were up in December. There are many reason why people are saying that we are in a recession; unemployment, stock market figures and I could be here all day and tell you why Canada and the GTA have had a bad economic year. These are the recent sales figures for December in 2009. According to the Toronto Real Estate board, sales were up, way up compared to last year. Average price was also up. This is due to many economic factors. From my experience in the recent months, I believe this is due to a lack of inventory in the market and most importantly the interest rates are so low at this time. Many people have sold their house and have upgraded due to the low-interest rates in a bigger house they can now afford. Other people in my experience have invested their money in second homes or commercial properties which they hope would have a nice return. People who invest in properties have taken advantage of the lack of inventory and sold their property to get the most value. Since there is not that much inventory people who figure they could make some money while it is a seller’s market have sold. There are also those people out there who are buying before the HST comes into effect this year. Whatever the motivation I believe as well as many other analysts out there that prices will continue to go up and it will continue to be a seller’s market this year. It might slow down a bit for the sellers when more inventory comes in the spring but it seems like 2010 is looking to be a great real estate growth year.
This is the article I referenced. It is taken from TREB website.
GTA REALTORS® Report December Mid-Month Resale Housing Market Figures
TORONTO, December 17, 2009
transactions in the first two weeks of December compared to 1,487 in 2008. The strong
growth represents both increased home ownership demand and the fact that we are
comparing the recovery phase of the sales cycle this December with the contraction
phase experienced last winter
Year-to-date sales, at 84,888, were up 16 per cent compared to the same period last year
and have moved in line with the healthy levels experienced in the 2004 through 2006
“We experienced a very strong and broad-based recovery in the second half of 2009,”
said Toronto Real Estate Board President Tom Lebour. “The rebound in the housing
sector speaks to the confidence that households have in overall economic recovery.”
The average resale home price during the first two weeks of December rose 17 per cent to
$423,103. The year-to-date average was $395,411, up four per cent compared to the same
period in 2008.
“The double-digit price growth we have experienced since September will continue
through the first quarter of 2010. Average price growth will move to a sustainable pace in
the spring as listings increase,” according to Jason Mercer, TREB’s Senior Manager of