Toronto Real Estate

So what is really going on in the Toronto Real Estate Market? So much discussion about the pending crash especially with all the drama in the financial markets. Let’s look at some facts about the Toronto Real Estate Market.

• 2007 was a record year – a total of 93,193 transactions in the residential sector
• this represented a 12% increase over 2006
• the City of Toronto introduced a new land transfer tax, thereby doubling the cost to buy a home in Toronto
• if you purchased a home by December 31, 2007, you were exempt from this new tax
• December 31, 2007 – it’s New Year’s Eve – it’s 8 pm and I have just finished negotiating the sale of one of my listings. Those buyers saved themselves $14,000 in closing costs!!
• Home values are at an all-time high having increased 7% in 2007 across the GTA

Today, the real estate market is not moving at the same frantic pace as it was last year. While I think this is in part a result of the public’s concern about the economy and where it is headed, I beleive the new City of Toronto Land Transfer Tax has had an impact as well.

• in August 2008, the number of transactions is down 25% compared to August 2007 and only down 10% when compared to August 2006
• in East York – a neighbourhood that I specialize in – prices for 2008 have actually increased 6%.
• on Sunday, October 5, I had clients who were involved in a bidding war with four other buyers for a home in Leslieville
• prices in Toronto fell 1% in August compared to 2007 but are still up 10% compared to the same time period in 2006!

From my point of view and in the markets that I work

• buyers are not rushing into decisions
• Bidding wars are not de rigueur
• there is more inventory on the market and it is taking longer to sell
• the sky is not falling!

I beleive there is an opportunity for buyers in this market to:

• avoid making numerous offers in bidding war situations
• avoid spending hundreds of dollars for home inspections on properties you never got to buy
• negotiate a fair price for your home!