Posted on September - 18 - 2010
Toronto Sales are UP!
By Brian Madigan LL.B.
I know that you thought that the sales were going down and that interest rates and the HST had killed the market.
The bad month was supposed to be August. So, let’s have a look at the August numbers over the last 7 years.
Year………..Sales
2004……….6,743 2005……….7,498 2006……….6,976 2007……….8,059 2008……….6,318 2009……….8,035 2010……….6,232
The average number of sales in the month of August is 7,132. That means that this year we would be 891 sales short, which represents a 7.99% decline.
Just because there were 891 fewer sales in August, does that mean that the market has tanked? Some would say so. Just look at the current newspaper headlines, and the TV stories.
Let’s have a look at the annual sales figures for the last 7 years from January until the end of August in each year:
Year,,,,,,,,,,Sales
2004……….63,099 2005……….60,309 2006……….60,633 2007……….68,463 2008……….58,618 2009……….59.616 2010……….64,313
The average number of sales over the last 7 years from January to the end of August was 62,150. That means that in 2010, there were 2,163 additional sales which represents a 3.48% increase. Not too bad for a market that is tanking.
Now, let’s have another look at the numbers over that last 7 years. Only 2007 was higher at 68,463. That means that 2010 had the second highest number of sales for the first 8 months over that measurement period.
So, why all the worry?
Let’s have a look at 2010, month to month:
Mon………Sales
Jan……….4,986 Feb……….7,291 Mar……….10,430 Apr……….10,898 May……….9,470 Jun……….8442 Jul………..6,564 Aug………6,232
What you will notice is that March and April were exceptionally strong months. And, if there is a real estate story in 2010 about the market, it should be the strength of those two months.
Remember that the common advice in the Spring was:
• Take advantage of low interest rates, and • Beat the HST
There’s really nothing unusual. The consumer just followed the common advice.
You can’t have the sales in March and April, and then expect them to be there in August too!
The 2010 market is simply performing predictably as it should.
Brian Madigan LL.B., Broker is an author and commentator on real estate matters, if you are interested in residential or commercial properties in Mississauga, Toronto or the GTA, you may contact him through Royal LePage Innovators Realty, Brokerage 905-796-8888 www.OntarioRealEstateSource.com
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