Toronto’s Spring Market Continues With Robust Sales

Spring 2011 Homes Sales Continue Throughout The Summer

 

Timing is critical in selling any home. Consumers considering selling their home attempt to capitalize on the robust spring and fall seasons by listing then. It is during this period that most buyers are actively looking and savvy sellers are listing their homes to capture this marketing window. However, once the mercury hits the high 20’s and July rolls around we historically see a significant cooling off of Toronto’s house buying season.

HOT BREAKING NEWS! It seems our spring 2011 is ignoring past buying and selling trends as we continue to see higher prices within multiple offer situations. If you look at the numbers you can see that they tell partially of what is happening this year over last year:

 

Toronto Real Estate Board Housing Market Indicators
June 2010 June 2011 % Change
Sales 8,442 10,230 +21%
New Listings 15,086 14,837 -2%
Active Listings 23,923 18,171 -24%
Days on Market 27 24 -11%

*All figures for single family dwellings

The key indicators here are active listings and days on market:

  • You can see that active listings are down 24% so as we rolled through June and into July buyers were faced with a significant drop of available homes for sale. Now that we are into July most sellers will wait until September so we will continue to see a drop in active listings.
  • With days on market down an average of 3 days across the GTA, homes are selling quicker and buyers are offering higher prices inorder to win the sale.

I have clients where we were consider listing in the fall – the reason being is that they had lived in the house for 60 years and they had collected decades of living. We had established a listing price base upon what had been selling and we knew that once we removed all the clutter and staged the house it would show better. Again, in keeping an eye on the neighbourhood it was apparent to me that there was absolutely nothing for sale that was in our price range. What this created was the perfect window to sell:

  1. House priced to value of the street
  2. No other homes to compete with under $500,000

Presently, my sellers and I have moved up the listing date by 5 weeks and are focusing our work on making a late July date. Now, when the listing comes out we have increased our selling price with a 5% premium (over September’s price) and expect a high number of buyer showings.

Good realtors know the market and it is critical you get someone who actively monitors key indicators and not one who sits on the sidelines.