The Fall Real Estate Market has begun and with it comes the usual ‘sky is falling’ and ‘doom and gloom’ newspaper reports. When the gossip from TIFF subsides, the pundits turn to Real Estate. So let me give you a working REALTORS’ perspective of the market.
September produced 5,875 transactions, according to the Toronto Real Estate Board. These numbers show a 21% decrease in activity over 2011 BUT an 8.5% increase in prices. Why the decrease? A number of sensible reasons are the answer. First, our strict new mortgage guidelines which do nothing but cautiously protect the market. Second, our lack of inventory in the GTA is caused in part by the reluctance in move-up buyers throughout the 416 due primarily to the financial burden of the double land transfer tax. Third, the obvious abundance of new high rise inventory has created a slowdown in the condo market. And finally, the American election, don’t laugh. Historically, an election of any type, local, provincial or federal will slow our market because of the uncertainty it creates about our economic future. Tied so intricately to our neighbours to the south, it is no surprise we are seeing this effect.
In our company alone, half of our transactions last week were still multiple offers, therefore, a price increase of 8.5% over 2011 is not at all surprising. “Barring a major change to the consensus economic outlook, home price growth is expected to continue through 2013,” said Toronto Real Estate Board Analyst, Jason Mercer.
Toronto is a vibrant, fun, multi-dimensional, attractive and undervalued city. Be assured that you can depend on my experience as well as my own practical knowledge. I look forward to connecting with you very soon, but in the meantime, a family, friend, neighbour or colleague referral would be terrific.