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Toronto Market conditions

Signs for optimism as spring real estate market shapes up

Real estate  professionals across the country are feeling optimistic about the positive signs they’re seeing in the market this spring.  Existing MLS® home sales activity increased for the second month in a row in March 2009, according to statistics released by The Canadian Real Estate Association (CREA). The number of new listings also continued trending lower in March.  This is an important statistic, since the lower supply of listings coming onto the market will continue to keep the demand up for active listings.  

Over 31,000 homes traded hands nationally via the MLS® in March 2009. This is an increase of 7% from the previous month, and builds on the 10.3% activity gain in February. The largest sales gains were in BC and Ontario.  The number of transactions in March 2009 stands 18% above levels reported in January 2009.  It’s a clear indication that buyers are seeing value in today’s market, and are taking advantage of this great opportunity. 

Looking ahead, there has been a rapid drop in new construction, which should also help to support the demand for resale properties in the months ahead.  The seasonally adjusted annual rate of housing starts decreased to 117,400 units in April from 146,500 units in March, according to Canada Mortgage and Housing Corporation (CMHC). According to CMHC's Market Analysis Centre, most of the decline has occurred in the condominium segment in Ontario.  While some improvement is expected as the year progresses, new home construction is not expected to approach the pace set over the past seven years, which exceeded 200,000 units per year.

This decline in new home construction combined with a drop in new listings coming onto the market should combine to keep up demand for resale properties.  As the balance of supply to demand continues has firmed up, and demand for resale properties continues, this also helps support prices and maintain home values.

Want to know more about what’s happening in real estate in your local community? Feel free to contact me anytime and find out what great opportunities are available in today’s market.

http://www.epsteinrealestate.com 

jepstein@terrequity.com

416 495 2208

Jordan Epstein

Published Sunday, May 17, 2009 11:33 AM by Jordan Epstein

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