Home > real-estate > Toronto housing market – update

Toronto housing market – update

I haven’t had much time to write since buying a house and selling my condo… if I can convince myself, I’m never going to move again, that means not buying another principal residence.

It has been over a month since the new mortgage rules took effect… is there any early effect on real-estate markets? Let’s look at the GTA housing numbers for March 2011…

  • Year-over-year Prices up 5%
  • Year-over-year Sales down 11%
  • Month-over-Month Prices up 0.4% vs 5-year average of 0%
  • Sales up 15% over 5-year average Sales

I don’t think there is anything to worry about yet but I think we need to keep an eye on Sales numbers… -11% sounds like a lot but 2008-2010 were outliers for Sales numbers

…and mid-April numbers are:

Greater Toronto REALTORS® reported 4,444 sales during the first two weeks of April 2011 – a three per cent decrease compared to the first two weeks of April 2010. The number of new listings was down by 21 per cent compared to the same period last year.

Again, nothing to worry about here either. 3%… however, average prices have shot up!

  • Year-over-year Prices up 10.4% vs a range of -3 to +13 % over the last 5 years!! (with that kind of variation, averages become meaningless)
  • Month-over-Month Prices up 6% vs 5-year average of 4% !

I have been saying for the last year that this kind of price increases is unsustainable and I reiterate it here.

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