TORONTO REAL ESTATE INVENTORY NUMBERS ARE LOW! MARKET IS STILL …. HOT!
In March 2011 there were 9,254 sales for the month! Although this is approximately 10% fewer than March 2010, these are very strong numbers. The number of homes for sale is still very low. We have only 16,409 for sale right now. What’s really interesting is that inventory increased by 29% between Feb/10 and March/10. This year that increase was dramatically lower at only 15%. I’m pretty concerned about the continued lack of properties for sale.
What that means is that we will likely have a very tight Seller’s market this spring. The buyers out there don’t have a lot of choices. In the Toronto area as a whole, we only currently have approx 1 ½ month’s supply of homes for sale. It would only take only 45 days to clear out all of the existing inventory if no new listings were to become available. There are only a handful of markets in North America that even come close to what we are experiencing. To put things into perspective, Las Vegas has well over a year’s worth of inventory available. We are definitely still in what experts would consider a “Seller’s Market”.
A question I get asked is often, “What do you think will happen this year?” We are going into a federal election and unless something really goofy happens afterwards, we should still continue to have a very sound economy. Mortgage interest rates are still very low and probably won’t rise dramatically for some time yet. SO we’re looking good for a while.