2010 Toronto Real Estate Report (Mid Dec report)
15thDecember 17, 2010 (FINAL 2010REPORT)
Hi,
Thisis the final report for 2010. This year has been a very interesting time forthe Toronto Real Estate business. Twelve months ago, there was a sense euphoriaspreading through the industry, new agents were flooding to the business andnew companies popping up all the time. Since that time there have been many socalled “experts” who were predicting the demise of the Toronto area real estatemarket. There was to be some sort of a “bubble” that was going to burst. Wellit ended up that a bit of air out of an over-heated market leaked out. Has the market softened? Yes it has in mostareas and is settling back to a more “normal” market. There are however severalareas and price ranges in our market that are still hotter than ever, seeingmultiple offers and over asking sales prices.
Ijust checked the stats for the Toronto Real Estate Board. As of December 15ththere have already been 2,923 sales reported for the month. It looks like we’llsee well over 4,000 sales in total once December is done. That’s pretty darngood for a December. We are currently down to 13,360 homes for sale. Thatnumber has dropped by 1,700 in only 14 days. There are approx 3,000 listingsthat will expire by New Years day AND another 1,000+ will likely sell beforethe end of the month. I’m quite confident that the number of homes for saleon January will drop well below 10,000 units. For those of you who aren’tfamiliar with our market, that is a ridiculously low number. Right now (Yes … BEFOREChristmas) is probably the best time possible for anyone to list their home.
Thereare 3 main things that control a real estate market and what happens to prices.Inventory levels, interest rates and the local economy. Inventory levels arealarmingly low. Interest rates are very low and will stay low for quite awhile. Our local economy is one of the strongest in the world and has barelyskipped a beat throughout the turmoil in other countries. These 3 factors pointto the market to continue to be healthy. We should see moderate increases invalue and not the price drops being predicted by others. Activity will remainstrong although not at the crazy pace we’ve experienced for the past few years.That’s a normal, healthy real estate market.
Ifyou know anyone who wants to take advantage of some interesting marketconditions, whether they want to sell OR buy, the key is working with the rightagent. It’s more critical now than it has ever been. That’s where I come in.Call me with their information or give them my number. I’ll work hard for themand give them the “red carpet” treatment!
HappyHolidays and all the best for 2011!