Toronto Real Estate’s Crash Landing … Or Was It?

    Just reviewing 2017 year to date. I was thinking about all the negativity in the media this year about how bad sales have been on the Toronto Real Estate Board. Here’s how 2017 shakes out ….


    2016 was our best year ever. It was a freak kind of year. Over 113,000 properties sold and up almost 12% from 2015! Now amidst all the negativity, all the changes this year, the sky falling according to news reports, guess where we sit through 11 months for 2017? As of right now, we are the 6th busiest year in Toronto Real Estate Board history. Now we still have a month to go, so if we sell 1600 homes this month, we are in the top 5 years ALL TIME! AND if we have an “average” December and sell around 5000 homes, we will make a run at  3rd or 4th in the all time sales list.

    Like we’ve been saying all year, it’s hard to look at one little segment of the market and declare that the sky is falling. We knew the fall numbers would boost us back to the 90,000-95,000 sales mark. And that’s exactly what we are seeing. Sure, the until sold will be down form 2016, but we have double the inventory from last year right now. Inventory on the market right now is up 110.6%. There are about 8k more homes on the market right now than at the same time last year. This is due to the fact that people were in a wait and see mode for about 5 months of the year. In a year without interference, those 8,000 homes would sell pushing us over the 100,000 units mark for only the third time ever, and we would not even be talking about a down market. Appreciation continues, and for the year we sit at +13.4% for prices. A very healthy increase. Traditionally, we have enjoyed increases in the 6-8% range, so this is a bit higher than normal. This just goes to show, the best time to buy a home was yesterday, and the second best time is now. Even with more selection, you’re still paying more as time goes on then you were before. All the reports about prices dropping, and even some Realtors coming out and saying prices have dropped, aren’t true. Real Estate is not like the stock market where people can time a market to buy and sell. Real Estate is a long term investment, and when analyzing results you need to take a long term viewpoint rather than putting a small segment under the microscope. — at RE/MAX Prime Properties.

     

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