Greater Toronto REALTORS® report 8,107 Resales in April

[carturo15]

TORONTO, May 6, 2009 - In April 2009, Greater Toronto REALTORS® reported 8,107 sales –
down seven per cent from April 2008. While April sales remained lower than last year, the
resale housing market gained momentum on a month-over-month basis. The seasonally
adjusted annual rate of sales in April, at 80,900, was up 26 per cent from March and up twothirds
compared to January’s ten-year low.1
“Conditions in the resale housing market have improved markedly this spring,†according to
TREB President Maureen O’Neill. “Home purchases have increased as households have taken
advantage of low interest rates and slightly lower home prices.â€
The average price for April transactions was $385,641 – down three per cent from last year.
“The rate of average price decline continued to diminish last month. This is due in large part to a
tightening in the resale market,†stated Jason Mercer, TREB’s Senior Manager of Market
Analysis. “The level of sales relative to new listings increased in April.â€
SUMMARY OF APRIL SALES AND AVERAGE PRICE 2009‐2008
April
2009 2008
Sales Average Price Sales Average Price
City of Toronto ("416") 3,222 $421,470 3,467 $446,781
Rest of GTA ("905") 4,885 $362,009 5,295 $370,274
GTA 8,107 $385,641 8,762 $398,687
Source: Toronto Real Estate Board

 

[carturo15]

The market is not that bad as many people think.

the number of transactions in C01 downtown were 354 in April 2009, April 2008 was 352, April 2007 362 transactions, April 2006 276.

 

[Ken]

I agree. I suspect it's the low interest rate that drives the sales up.

Too bad, I wanted the price to drop further instead of low mortgage rate.

Now, I am 50/50 on that we are seeing the bottom of housing market now, mainly because of the low interest rate. Please let me know what you think.

 

[daveto]

The interest rate inflating our real estate market??? Do you mean the BOC prime at the lowest mathematically possible rate???

Don't be silly. Of course that has nothing to do with it! lol, as if!

Canada (and Toronto in particular), are immune to what has happened to the housing markets in the rest of the world...from the US to UK, from Ireland to Denmark, from the Ukaine to Russia. They are all the same, and we are different.

We are immune! This is the bottom! Rejoice all ye first time buyers and buy now!!

 

[Eug]

Now, I am 50/50 on that we are seeing the bottom of housing market now, mainly because of the low interest rate. Please let me know what you think.

I think it's premature to say the GTA has bottomed. I personally might expect continued small decreases. However, I wouldn't be surprised if we are near bottom, regardless of how much the doomsayers try to convince everyone the GTA is going to drop 30% or whatever next year based on dubious comparisons to very different markets.

 

[torontofcfan]

There are a flood of people who have been waiting on the sidelines to purchase a condo. Once these buyers realize that prices are not going to fall, and the market is beginning to move, and that interest have no where to go but up....they are all going to rush the market. Then, IMHO, the boc will raise interest rates to fight off inflation.

And if you want to take anyones opinion, ask them what their predictions were this time last year.

 

[Shtopor]

Even with rock bottom interest rates (read lowest mortgages in history) sales
are less then last year? lol. RE industry can show their numbers at any angle they like, but those with cash know increasing unemployment and booming RE don't get together. When prices still be going down this fall, those who bought will regret they didn't wait.
P.S. Today at 1 PM we almost had an outright failure of a USA Treasury Bond auction. They attempted to sell $14.88 Billion US $ worth of 30 Year Bonds, and it seems not enough buyers showed up.

The Primary Dealers (16 large Banks) are required to “take up†the auction (buy the Bonds) and the Fed will no doubt buy them back. Without that paper exercise, an outright failure would have probably resulted, as note enough real buyers showed up.

This is a warning shot right across the bow of Obama and his plans to run large deficits forever. Thatâ€Plan†is now dead in the water. Interest rates will have to rise to attract Bond buyers, or the budget will have to be balanced or cut severely - which do you think is more likely?

 

[JayBee]

Even with rock bottom interest rates (read lowest mortgages in history) sales
are less then last year? lol. RE industry can show their numbers at any angle they like, but those with cash know increasing unemployment and booming RE don't get together. When prices still be going down this fall, those who bought will regret they didn't wait.
P.S. Today at 1 PM we almost had an outright failure of a USA Treasury Bond auction. They attempted to sell $14.88 Billion US $ worth of 30 Year Bonds, and it seems not enough buyers showed up.

The Primary Dealers (16 large Banks) are required to “take up†the auction (buy the Bonds) and the Fed will no doubt buy them back. Without that paper exercise, an outright failure would have probably resulted, as note enough real buyers showed up.

This is a warning shot right across the bow of Obama and his plans to run large deficits forever. Thatâ€Plan†is now dead in the water. Interest rates will have to rise to attract Bond buyers, or the budget will have to be balanced or cut severely - which do you think is more likely?

I think the amount of properties available on the market this year is less than last year. That might explain it.

A lot of investors are just renting out their places instead of selling since many are not getting their asking price.

This is all my opinion, but I'd really like to see the difference between the amount of propertis available this year and last year.

 

[cdr108]

I think the amount of properties available on the market this year is less than last year. That might explain it.

A lot of investors are just renting out their places instead of selling since many are not getting their asking price.

This is all my opinion, but I'd really like to see the difference between the amount of propertis available this year and last year.

http://www.torontorealestateboard.com/consumer_info/market_news/mw2009/pdf/mw0904.pdf


Housing Market Indicators
Sales 8,762 8,107 (-7%)
New Listings 18,691 12,995 (-30%)
Active Listings* 24,530 23,515 (-4%)
Days on Market 27 37 (+37%)
* All figures for single-family dwellings.


I am suspect of the 'Days on Market' though since it's currently common practice to re-list with a price reduction to remove the stigma of a stale listing and give better results of DOM.

 

[Monaco]

I think the amount of properties available on the market this year is less than last year. That might explain it.

A lot of investors are just renting out their places instead of selling since many are not getting their asking price.

This is all my opinion, but I'd really like to see the difference between the amount of propertis available this year and last year.

I think the number of new listings has increased noticeably in the last few days. (at least when I'm browsing mls for downtown - not a really good sample, I know).

Perhaps sellers are coming out because of the relatively good RE news. Just like some buyers, I'm sure there were sellers sitting on the sidelines for the last few months.

 

[JayBee]

I think the number of new listings has increased noticeably in the last few days. (at least when I'm browsing mls for downtown - not a really good sample, I know).

Perhaps sellers are coming out because of the relatively good RE news. Just like some buyers, I'm sure there were sellers sitting on the sidelines for the last few months.

I would agree for units above $300K

Under $300K? Not so much

 

[Ken]

Even with rock bottom interest rates (read lowest mortgages in history) sales
are less then last year? lol. RE industry can show their numbers at any angle they like, but those with cash know increasing unemployment and booming RE don't get together. When prices still be going down this fall, those who bought will regret they didn't wait.

That's true. I miss that sales number part. Well, this can be looked at both ways, since interest rate is down, more ppl will jump in and RE price goes up. The RE price will depend if the unemployment will be increasing this year.