April definitely showed signs that the pace of resale homes being sold in Toronto is gaining traction. In this week’s announcement from Toronto Real Estate Board, the seasonally adjusted annual rate of sales for last month was reported to be up 26% over the month of March, and up 66% over January of this year. The average price of homes sold was only down 3% compared to April 2008, which is also an improvement over the last few months.
The usual ‘spring flurry’ of real estate transactions (that actually tends to start in mid winter) got off to a slow start this year, but seemed to come into full-force in April. The combination of extremely low interest rates, and the common perception that homes are a good deal right now, has resulted in a bit of a buying spree, particularly at the entry price levels. Because of a lack of homes being offered for sale, the pendulum actually swung to being a “sellers market” last month when analyzed from a sales-to-listings statistical perspective. Translation: Many low-priced homes sold in multiple offers for higher than their asking price.
Watch my next couple of posts for more info on what this means for move-up and first-time home buyers.
Read the complete April 2009 Market Watch Report from the Toronto Real Estate Board.