The 5,879 single family homes sold in September brought the total sales up for the year to 69,909 with a year to date average price of $ $499,090 up 7.3% over last year’s average price of $465,008. The last 3 months of the year average 20.5% of the sales done for the year, so it looks like 2012 will end with 88,000 sales a very strong year for Toronto real estate. In addition to the resale homes, approximately 25,000 pre construction condos have sold in 2012.
While the recently introduced stricter mortgage lending guidelines have impacted the number of sales to an extent, the inventory of homes available for sale remains low which has resulted in strong price increases. September average selling prices were up compared to last year for all major home types. Price growth was strongest in the City of Toronto, including condominium apartments with eight per cent year-over-year growth. All home types experienced year-over-year price increases, with substantially stronger increases for low-rise home types.
While these numbers of sales look rosy, not all agents are having a good year. If you look at the total number of sales so far in 2012, it is 164,818. (69,909, homes sold, 69,909 buyers purchased homes and 25,000 new condominiums sold). With 36,000 real estate agents registered with the Toronto Real Estate Board, that averages out to 4.6 transactions per agent, not very impressive! The actual numbers are worse! 77% of the sales are done by the top 23% of the agents (8,820 agents) who average about 20 sales each. The bottom 77% of agents (27,720) have approximately 37,908 sales or an average of 1.4 transactions each!
Obviously, not all agents are equally competent, nor are all doctors, lawyers, car mechanics, teachers or plumbers. Talent is important because it impacts results! And when you are talking about your house, the most expensive asset you will ever purchase, you need an experienced professional on your team.
As we head into the “slower” winter months, this is a great time to buy or upgrade your home. I have great preconstruction opportunities on downtown condominiums and with me on your side I will make sure you are educated, satisfied and will give you the information you need to make the right decision for you and your family.
Give me a call I would be happy to talk “real estate” with you!
Have a great October, and remember, I am never too busy for your referrals!