They say the real estate market is slow. Here are the facts…You be the Judge!
6,896 homes sold in October 2012 vs. 7,425 in October 2011.
76,587 homes sold YTD as of October 2012 vs. 77,603 as of October 30 2011.
Average home price as of October 30, 2012, $499,350 vs. $465,014 in December 2011. The average selling price for October transactions was $503,479 – up 6.2 per cent compared to October 2011.
All in all it seems to me to be, “Much ado about nothing!”
However, while I believe the real estate market is healthy and strong and that prices will continue to increase, I do advise caution. What does that mean? Primarily this is not a time to speculate or gamble on the market. Do not buy or sell today assuming that you will buy or sell next year because prices will have gone up or down. Within a six month period, no-one knows prices, activity levels, interest rate changes or economic factors and all of those affect real estate demand and prices.
This is a great time to buy real estate, provided you have a 5 year timeframe, meaning you do not have to sell for 5 years. It’s a great time to sell your home, and buy a replacement home. There is no gamble if you are buying and selling in the same market!
It’s a great time to buy as there are more homes for sale, fewer buyers in the market (November, December, January are the slowest months for house sales in Toronto) and interest rates continue to be very low which means homes are affordable for many buyers.
Sometimes one must be a Contrarian, go against the trend. Today’s trend, fueled by negative media is insecurity about the real estate market, “wait, as no one knows what will happen”.
Here is what I know:
1975 average Toronto home price $57,581.
1985 average Toronto home price $109,094.
1995 average Toronto home price $203,028.
2005 average Toronto home price $335,907.
2011 average Toronto home price $499,350.
Buying or selling is a complicated issue. If you have questions, please feel free to call me and let’s chat. If you know of anyone who could use my expertise, please let me know I would love to help!
Have a great November!