GTA home sales weaken in December; Particular weakness out of City of Toronto

Home sales in the Greater Toronto Area had shown a significant rebound in year-over-year sales data since bottoming at a -34% reading in July.  Home sales had improved on a year-over-year basis through to November, where sales came in a modest 13% below 2009 levels.

However, the strengthening trend may well be in for a reversal if mid-month data is any indication.  TREB reported today that mid-month sales came in 19% below year-ago levels across the GTA.

Prices across the GTA registered a 3% year-over-year increase, down from the 5% year-over-year jump in November.

However, both sales and price data for the GTA as a whole belie a strong weakening trend in the city of Toronto.    Home sales in Toronto were down 24% from year ago levels while home prices were up only 2% year over year, much less than the near 6% year-over-year rise in November.

This may portend bad news for the broader Canadian market as the GTA has been the hottest market since sales levels bottomed in July and represents a large portion of the total Canadian sales volume.  The final December sales numbers should be very, very interesting.

Cheers

Ben

 

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3 Responses to GTA home sales weaken in December; Particular weakness out of City of Toronto

  1. Nick says:

    We are looking for a house now in west Toronto. Seems nuts but we need more space for the family and my business to grow. We have no debts, and at least 20% down. We are strict about austerity and nothing like most of our peers in that regards.

    Anyway, something I’ve noticed and discussed with my agent. Many houses have been listed, they “hold off offers” for a week and if nothing materialises, the house is pulled off the market. From what I can gather, spring is a better time to sell and possibly get a better price so some are waiting and hoping. No doubt on the agents advice.

    Now, my question is, if 70% of us already own houses, how many are left to buy? And by taking houses off now, aren’t they now running the risk of more supply than buyers come spring time and lowering prices?

    Keep up the fine work!

    Nick

  2. Pingback: Who’s the ‘hare-brained’ one? More hot air from perma-bull Jay Bryan | Financial Insights

  3. Pingback: Quick tour through the board stats- December 2010 | Financial Insights

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