Real estate market calmer in August

September 11, 2009

The summer 'micro-boom' of the Toronto real estate market seems to be slowly fading away, according to data from the latest TREB report. However, the results clearly show that last year's summer has been surpassed by the amount of units sold this year.

In August 2009, realtors reported 8,035 sales. Compared to 6,318 units sold in August 2008. This means a 27% positive jump. On the other hand 9,967 sales in July signaled that the market is finally calming. The average price increased by 6% from the August 2008 up to $387,921. Furthermore this figure indicates the end of the fast boost – the price is significantly down from July's average price $395,414. Homeowners don't have to panic – this price is still 6% over last year's average, leaving a decent surplus for them, considering the minimal inflation in Canada. The median price increased to $338,000.

TREB President Tom Lebour said:

“The increase in demand for existing homes has been widespread across different housing types and price ranges. This suggests many categories of home buyers have chosen to make a long-term investment in housing, from first-time buyers to move-up buyers or buyers who are seeking a lifestyle change.”

His opinion is supported by both lower days on market indicator (30 days, compared to 31 in July and 36 in August 2008) and active listings indicator, which dropped to 15682 from last year's tremendous overload of 25,076 units listed.

Year-to-date sales finally surrpassed last year's results reaching 58,421 units (up 2% compared to the first eight months of 2008). The average price, at $385,978 was up by less than one-half of one per cent. New listings inflow also dropped to 10,632 units from July's 12,174.

Real estate market calming is a good signal of a healthy environment, which is finally not extremely favoring any of the dealing sides.