Mid October 2011 Toronto Housing Report

Here is the latest report for the first half of October. The market was quieter a year ago as we were seeing buyer fatigue. Many clients at the time were tired of seeing houses going in to multiple offer scenarios, so they stepped back for a breather which led to a temporary correction in prices. Only time will tell whether this happens again this year. At this stage what we do know is that quality homes are not readily available. When a good quality home that is priced well arrives on MLS there is a flurry of interest. Don’t get me wrong we are certainly in a seller’s market (and will be for a while) but a slight slow down is being felt due to the quality of homes. A quarter of the homes sold in our office last week went over asking, the other 75% were under. So, stay tuned to what the market holds as we head further into the fall…
TORONTO, October 18, 2011 Greater Toronto REALTORS® reported 3,477 transactions through the TorontoMLS® system during the first 14 days of October 2011. This total represented a 20 per cent increase over 2,890 sales reported during the first two weeks of October 2010. Year-over-year growth in new listings for the same period was slightly stronger than that recorded for sales – up 21 per cent to 6,249.

“The first two weeks of October seem to be pointing towards more balanced market conditions as we move toward 2012. Growth in new listings outstripped growth in sales, meaning more choice for buyers,” said Toronto Real Estate Board President Richard Silver. “A growing number of home owners are reacting to the above average price growth reported this year and have decided to list their home for sale. They are confident they will receive timely offers in line with their asking prices.”

The average selling price during the first two weeks of October was $475,743 – up 7.5 per cent compared to the same period in 2010.

“The average resale home price is expected to grow at a slower pace in the months ahead because the market is becoming better supplied. There will be less competition between home buyers as we move through the fall and winter.” said Jason Mercer, the Toronto Real Estate Board’s Senior Manager of Market Analysis. “With a more balanced market in 2012, the average rate of annual price growth is expected to be in the mid single digits.”

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