House Market Nears Record. Is It Time to Jump In?

It’s a tighter market but GTA existing home sales are on track for another record year, according to the Toronto Real Estate Board.

Sales have been dropping since the summer, making for a tighter housing market, according to TREB President Bill Johnson. November 2010 sales totalled 6,510 – a decline of 13% from November 2009 figures.  

However, TREB is optimistic: “Sales through the first 11 months of the year were down only marginally compared to the same period in 2009,” Johnson says. “We remain on track for one of the best years on record under the current TREB market area.”

A 13% drop in new listings – the second month in a row this bellwether has declined – may simply be the lead-in to the holiday season, which traditionally is a slow period for both new listings and sales. Or it may indicate nervous sellers, concerned about a 27% increase in November’s days-on-market figure.

Unfortunately, this is likely to have a further dampening effect on sales as buyers find less choice available in the market. Add to that a 5% increase in the average home price in November 2010 (It is now $438,030), and some buyers may become discouraged. 

While 2010 may still be a record year, it’s important for motivated sellers and house-hungry buyers to consider getting in while the going is still good.