I’ve just put together my recap of the Toronto Real Estate Market for January 2011. The numbers remain quite strong so it looks like 2011 is starting off with no real surprises. Toronto and the surrounding areas are experiencing very stable conditions.
To start the year we had 4,333 sales reported, which is slightly below the same month last year. Our challenge and the big story is that the inventory numbers are extremely low, sitting at 11,815. There have never been fewer properties available in any January that I could find in the records going all the way back to the 90’s.!!! This current level puts us at a 2.7 month supply of listings which all “experts” would agree points to the market tilted slightly in the favor of the sellers. The word on the street from other agents I know is that there is a big shortage of good listings out there. They have buyers waiting and are ready to jump on properties as they come available. Good listings are being sold very quickly and we still have many instances of multiple offers on some properties.
SO the question always remains … what does 2011 have in store for us? My personal opinion and that of many experts, is we will see a slight decrease in the number of sales this year over 2010. In addition, inventory numbers will remain low causing prices in the GTA will rise at a slower pace than we’ve experienced over the last few years. To put things in perspective though, some of the previous few years have been crazy, so we’ll go back to more “normal” activity and price increases. While many areas of the GTA will remain in a hot “Sellers Market”, it appears that the further the area is from the city centre and the higher the price of the home is compared to the average in the area, the more adversely affected the particular market may be.
As discussed in the past, there are 3 main conditions that will cause our market to remain stable.
- Our inventory levels are very low and should remain low. We won’t have a huge influx of new listings or see anything close to other areas around the world as far as “distressed properties” coming on the market. Buyers won’t be able to sit back to pick and choose.
- Mortgage interest rates are very low and should remain low for quite some time. Although we may see marginal increases over the next while, home ownership will remain very affordable.
- Our economy is very strong and seems to be improving. Canada is a shining star in the world economy. We’ve been far less affected by negative economic conditions experienced elsewhere. Toronto will be right up front leading the pack in Canada.
Unless something drastic happens and we see significant changes in the 3 conditions above, we’ll be in great shape for the year. If you know anyone who wants to take advantage of these interesting market conditions, whether they want to sell OR buy, call me with their information or give them my number. I’ll work hard for them and give them the “red carpet” treatment!