With 2008 behind us, it’s possible to get a little perspective on the local real estate trends. It’s a tough time to be a seller, but nonetheless properties are still being sold every day. The other side of the coin is that interesting opportunities have opened up for buyers.
Looking at the month-to-month average price chart, it’s possible to see a pattern that shows levels returning to where they were two or even three years ago. In 2007, Toronto average prices rose sharply, with a fourth-quarter burst that may have been fuelled by buyers anticipating the City’s new land transfer tax in 2008. In 2008, the year started slowly, under a thick blanket of snow, but also confidently, as prices continued to rise. During the second half of 2008, a combination of mounting inventory and financial concerns drove prices down. The following chart shows the month-to-month movement of average sale prices in the GTA since January, 2006.Until August, the results for 2008 were very similar to the 2006 pattern. You can see the sharp drop in October 2008, during the height of the Wall Street turmoil, and the partial recovery in November and December. It is probable that prices in early 2009 will be close to the levels seen in early 2006. The number of properties sold each month will continue to be on the low side. Price levels in 2009 will be Continue reading