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Toronto Home Sales off to a strong start in 2012

 We are starting a New Year with Resolutions and Optimism! And an price increase of 8.5% averaged over last year.

 
The first real estate post that I notice is that "the eventual increase in interest rates will lead to a decline in home prices (probably in the magnitude of 10% - 15%)"
 
The ink was barely cold on the presses when the pundits were howling about interest rate increases. When the Bank of Canada announced only 3 days earlier.
 

 

TORONTO, January 17, 2012 – Greater Toronto REALTORS® reported 1,506 sales through the TorontoMLS® system during the first two weeks of January 2012. This result represented a six per cent increase compared to the first 14 days of January 2011. New listings were also up on a year-over-year basis, but by a lesser 3.7 per cent.


 

“The market didn’t miss a beat after the holiday season, with robust sales growth continuing and sellers’ market conditions remaining in place. Strong competition between buyers continued to push the average selling price higher in the Greater Toronto Area relative to a year ago,” said Toronto Real Estate Board (TREB) President.


The average selling price during the first two weeks of 2012 was $444,473 – up by more than 8.5 per cent compared to the same period in 2011.


“Prices were up for most major home categories in the GTA in comparison to last year. The strongest price growth was for single-detached homes in the City of Toronto. The average price of singles in the 416 area code was up by 22 per cent year-over-year, pointing to a greater weighting of higher end detached homes changing hands compared to the same time last year,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.


http://www.torontorealestateboard.com/market_news/release_market_updates/news2012/nr_mid_month_0112.htm


So here we are the start of a new sales year. Interest rates appear to be stable for the remainder of 2012. Inventory [available homes for sale] continue to be in short supply with the inevitable multiple offers when more than one buyer wants the same house.


Many of the pundits are talking about construction cranes and the inevitable lack of occupants for these newly constructed properties. Now lets add the one variable that no one is discussing;  The vacancy factor for Toronto rentals is very competitive. The Vacancy Rate appears to be around 1%. ONE percent. Rentals in high rise condo average $1,600 to $2,000 for a two bed two bath unit at Humber Bay Shore or Square One Mississauga


All of this may indeed be for only a limited time as demand may cause the rates to increase because of borrowing demand. Call now and let's beat the rush!


What do you think? Add your comments.

David Pylyp

Etobicoke Real Estate Agent

Accredited Senior Agent for York Peel and Halton Regions

Lives in Toronto and promotes Giving Value

As we move forward It would be good if you also circled me on Google +
https://plus.google.com/109283965469179719942/posts

Comment balloon 6 commentsDavid Pylyp • January 17 2012 08:16PM

Comments

David - Great, local real estate market report.  You've given both buyers and sellers a lot of good information to use.  Nicely done!

Posted by Laura Allen, Lake Tahoe - Truckee Real Estate for Sale TahoeLauraRealEstate.com, Tahoe Real Estate Agent Helping Buyers and Sellers (Coldwell Banker, Tahoe City, CA (530) 414-1260) about 8 years ago

David,

I tyhink this is going to be a very good year, so the fast start is not a surprise.

Brian

Posted by Brian Madigan, LL.B., Broker (RE/MAX West Realty Inc., Brokerage (Toronto)) about 8 years ago

Thank you Laura!  Always nice to be noticed!

 

 

Posted by David Pylyp (RE/MAX Realty Specialists Inc.,) about 8 years ago

Hello and Happy New Year Brian!

 

The initial activity has been well received!   Now we just need more inventory!

How do we get more product out and avaiable for sale?

 

Dave

Posted by David Pylyp (RE/MAX Realty Specialists Inc.,) about 8 years ago

David,  Great way to start what I am sure will be a great year.  When the market stabilizes, people will want to move up and list their present homes. 

Posted by Marge Piwowarski, Phoenix AZ Horse Property, LLC (Phoenix AZ Horse Property) about 8 years ago

David, we are jealous of the stability your nation maintained during our bubble years.  We were proud of the sales we had here in California during those years buy boy oh boy have we suffered for them.  Buyers are once again giving hope to a fantastic year here in Southern California.  We've had this hope a few time over the past 3 years only to be let down again.  Let's home this one lasts!

Posted by Tony Lewis, Summit Real Estate Santa Clarita & OC Laguna Nigel (RE/MAX of Valencia (Hall of Fame) 30 year Valencia Resident) about 8 years ago

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