Toronto Real Estate Turns on a Dime - And Now a Steady Market
Welcome to the stable marketplace! I am frequently asked a version of "how much farther do you think the market will fall" or any number of variations on "when do you think we will hit the bottom?" I think it's exceptionally important to underline one major point: the market isn't falling, it has fallen.
While that risks being interpreted as a word game, my point is that Toronto experienced a sudden and significant fall in house prices virtually at once.
We "turned on a dime".
Since then, prices have remained quite stable.
So when did this all happen? Starting in September, the local market experienced a decline of roughly 10% in the year-over-year prices.
That decline has been repeated, with very minor variation, in each of October, November, December and January of this year.
In January 2009 the average home in the city of Toronto sold for $364,000.
Same time a year previous? $404,000.
A decline of almost exactly 10%.
The trend continues.
While 4 months may not be sufficient to draw any longer-term conclusions, I believe that it patently dispels the argument that we are witnessing a continuing erosion of the local market.
To put this perhaps another way, buyers who have been sidelined since the 'fall' may not have gained much market advantage by their deferral of purchase.
Naturally this is of little comfort to sellers who have witnessed a decline in the value of their properties.
But they too should take comfort in knowing that the market played a quick and painful game, and is taking no more flesh at the moment.
A great deal is being made about the opportunities for first time buyers.
Indeed, there have been multiple opportunities of late to purchase superb properties at prices that were utterly unrealistic a year ago.
So if a new home is on your horizon - a first time loft, larger house for a growing family, or an awesome lot to build your dream home - then realize that the market has done something kind.
Finally, after all this time, it has given you the chance to make a careful choice, with consideration and care.
Not only might your home be much more affordable, but hopefully you will find exactly your own unique urban home.
Paul Johnston
While that risks being interpreted as a word game, my point is that Toronto experienced a sudden and significant fall in house prices virtually at once.
We "turned on a dime".
Since then, prices have remained quite stable.
So when did this all happen? Starting in September, the local market experienced a decline of roughly 10% in the year-over-year prices.
That decline has been repeated, with very minor variation, in each of October, November, December and January of this year.
In January 2009 the average home in the city of Toronto sold for $364,000.
Same time a year previous? $404,000.
A decline of almost exactly 10%.
The trend continues.
While 4 months may not be sufficient to draw any longer-term conclusions, I believe that it patently dispels the argument that we are witnessing a continuing erosion of the local market.
To put this perhaps another way, buyers who have been sidelined since the 'fall' may not have gained much market advantage by their deferral of purchase.
Naturally this is of little comfort to sellers who have witnessed a decline in the value of their properties.
But they too should take comfort in knowing that the market played a quick and painful game, and is taking no more flesh at the moment.
A great deal is being made about the opportunities for first time buyers.
Indeed, there have been multiple opportunities of late to purchase superb properties at prices that were utterly unrealistic a year ago.
So if a new home is on your horizon - a first time loft, larger house for a growing family, or an awesome lot to build your dream home - then realize that the market has done something kind.
Finally, after all this time, it has given you the chance to make a careful choice, with consideration and care.
Not only might your home be much more affordable, but hopefully you will find exactly your own unique urban home.
Paul Johnston
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