TORONTO, December 17, 2008 — Greater Toronto REALTORS® reported 1,487 resale transactions during the first half of December, from 2,868 sales recorded in the same period a year ago, Toronto Real Estate Board President Maureen O’Neill announced today.
The average price of a home in the Greater Toronto Area is currently $360,652. This compares to an average of $404,707 recorded during the first half of December 2007 and to an average of $343,048 recorded during the same period in 2006.
Keeping today’s market statistics in perspective, MLS statistics confirm that over the last 10 years the price of homes has increased in value. What this means for the consumer is that real estate continues to hold its value and is a solid choice for long-term investments, said Ms. O’Neill.
In the 416 area, 619 transactions were recorded during the first half of this month, from 1,402 sales that took place during the same timeframe a year ago.
The average price in the 416 area is currently $382,759, from an average of $450,731 a year ago, and $367,650 recorded in the first half of December 2006.
In the 905 region 868 homes changed hands in the first two weeks of this month, from 1,466 transactions that took place in the first half of December 2007.
The 905 region’s current average price is $344,887 from an average of $360,691 recorded during the same timeframe a year ago and $325,477 recorded at mid-December 2006.
The recent C.D. Howe land transfer tax study confirms REALTORS concerns that the second LTT imposed on homebuyers in the City of Toronto has indeed contributed to the economic conditions in the GTA, added Ms. O’Neill.
There are currently 24,708 listings on the TorontoMLS system, from 17,027 a year ago. The average number of days a home now remains on the market is 43, as compared to 33 days a year ago. Sellers are achieving 96 per cent of their listing price, as compared to 98 per cent a year ago.
Location, price and your own personal financial and family situation all play an important role when considering a purchase, said Ms. O’Neill. REALTORS can provide you with information about neighbourhoods, school districts and realistic pricing because of their vast knowledge of the local community.
This mid month release does not provide a year in review analysis. A summary of activity for all of 2008 including the month of December will be provided in the January 2009 Market Watch Report.
Source: Toronto Real Estate Board
For statistics on the Brampton or Georgetown real estate markets drop me an email.
The Bank of Canada slashed a key interest rate by three-quarters of a percentage point Tuesday as the central bank moved to combat major economic weakness. With the interest rate reduction is the biggest drop since one of a similar size in October 2001 the bank’s overnight rate now stands at 1.5 per cent, a level not seen since 1958.
“While Canada’s economy evolved largely as expected during the summer and early autumn, it is now entering a recession as a result of the weakness in global economic activity,” the bank said.
“The recent declines in terms of trade, real income growth and confidence are prompting more cautious behaviour by households and businesses.”
Most economists had been expecting a cut of half of a percentage point, although some had been calling for the more aggressive reduction the central bank made. In the wake of the Bank of Canada’s decision, the Canadian dollar was trading down 0.83of a cent to 78.91 cents US. Now would be a perfect time for people who had been waiting to buy in Brampton but were unable to qualify.
After the central bank’s move, TD Bank became the first of the country’s big banks to reduce its prime lending rate what it charges its top customers although it didn’t go for the full reduction of 0.75 of a percentage point. TD dropped its prime rate by a half-point to 3.5 per cent. The other top banks followed suit. Economists said the central bank may not be done with interest rate cuts, given the weak condition of the economy.
“Canada is only just entering a recession that will likely get worse before it gets better,” said TD Bank economist James Marple.
“Given the further deterioration in the outlook for inflation, an additional 50-basis-point cut when the Bank of Canada meets again on Jan. 20 is a reasonable expectation.”
Dawn Desjardins, assistant chief economist at Royal Bank, believes the Bank of Canada’s key rate will remain at 1.5 per cent, although she said future cuts could be necessary if the economic downturn is protracted.
Number of houses sold in Brampton in November 2008 = 315
Breakdown of Brampton sales:
Freehold townhouse sales = 53
Condo townhouse sales = 53
Condo apartment sales = 36
Semi-detached sales = 126
Detached houses sales = 301
Other type =
Number of houses sold in Brampton in November 2007 = 573
Total number of houses sold in Brampton in October 2008 = 455
Breakdown of Brampton sales:
Freehold townhouse sales = 50
Condo townhouse sales = 36
Condo apartment sales = 37
Semi-detached sales = 92
Detached houses sales = 235
Other type = 5
Total number of houses sold in Brampton in October 2007 = 601
Georgetown and Halton Hills are known as district W27 in the Toronto MLS system. Here are the statistics for 2007 for W27.
Month
January = 59
February = 88
March = 100
April = 106
May = 103
June = 114
July = 90
August = 79
September = 70
October = 102
November = 96
December = 54
Total number of houses sold in Georgetown / Halton Hills in 2007 = 1061
Breakdown:
Detacheds = 780
Semi-detacheds = 65
Freehold townhouses = 59
Condo apartments = 21
Condo townhouses = 101
Other types = 35
