BUYER BEWARE

Unusually strong activity during two of the traditionally quietest months of the year had led to a sharp decline in active listings the 1st of the year. The Toronto Real Estate Board reported a strong result for existing home sales and average selling price in February. Last month, 7,291 transactions were reported through the Multiple Listing Service within the TREB market area, representing a 77% increase over the same month last year. The average price for these transactions was $431,509 – up 19% compared with February 2009. While strong growth in existing home sales and average price were forecast to be strong in the first half of 2010, the big story last month was listings. New listings increased by almost 25% compared with February 2009. After adjusting for the season and annualizing this figure, we found that new listings climbed back to levels not seen since the fall of 2008.
We’re in for a heated Spring market that will, in all probability, spill over into the summer months, as the window of opportunity draws to a close. The supply of homes listed for sale has been drastically reduced, housing values are once again on the upswing, and banks and governments are moving in unison toward stricter lending policies

Interest rates are fuelling the fervor with 1st time buyers gravitating to product under the $525 range in both homes and condos. Semi detached three bedroom homes, in prime areas, are selling between $460k and $560k. Detached homes of similar size in prime areas are selling between $570k and $670k. Listing your home in this market will attract a premium price.

Buying in this market does represent a challenge with basically all product staged for multiple bidding. Having said that, there are opportunities in this market. The “opportunity” to purchase above the $700k range as product is selling for the “true” value of the home, not attracting multiple bidding in most instances.

Nevertheless Buyers tread softly and be careful if you participate in multiple bidding.


About Realty Drama