Attention Buyers - Market update

With the release of September's market stats by the Toronto Real Estate Board we can better understand what the Fall is going to look like this year. Generally the market fared well. Admittedly things seem rather lack lustre based on the standard we have become accustomed to with properties selling like wild fire and bidding wars every where we look. As such it is easy for the Doom and Gloom crowd to suggest the sky is falling.

However in the context of a more "normal" market - the good properties professionally presented and well marketed continue to sell. They may not be selling in seven days for over asking, but they are selling. Certainly the first lesson from the data is it's generally not advisable to list low and seek to push the price higher, rather listing a little higher with room to negotiate would be more prudent.

So what do the stats tells us - Prices are up 5% from this time last year and sales volumes are down 23%. The drop in sales volumes might seem alarming but they are being compared to record breaking months in the market. As mentioned in earlier posts a slow down in sales in my view is healthy for the market and will help sustain the market over time. While prices are up from one year ago and in many Toronto Real Estate Board Districts prices are up from the average prices in January and February. They have however come down modestly from the market highs in March and April.
Here is a chart from District E3 that shows the average selling price by month - the chart included data for 2008, 2009 and 2010.

So where to from here? I don't of course have a crystal ball so like any prognosticator I can only predict based on the data available and what I am seeing and hearing on the ground in the market. My sense is that through the Fall period buyers will be more cautious and fewer in number, that properties will take longer to sell, and that properties that don't show well, are poorly marketed or even slightly overpriced will sit and be more difficult to sell. I also expect that prices will pull back a bit more, perhaps giving up the gains we had in the first part of the year.

At the end of the day I expect a balanced and more modest Fall - those who are buying will be able to get better value for their money. In fact I would suggest that this Fall is an excellent buying opportunity. For one you can likely avoid competition, secondly you will get more for your money and third there is more choice and finally interest remains near historic lows. Whether you are moving up or buying for the first time now is a great time to go. If you are looking to downsize it's more tricky to know whether to wait or do it now. As always I'm glad to speak to anyone about their very particular situation and help to explore the options and the benefits and risks associated with the different choices.