GTA REALTORS® REPORT FEBRUARY RESALE HOUSING MARKET FIGURES

TORONTO, March 3, 2010 – Greater Toronto REALTORS® reported 7,291 sales through the Multiple Listing Service® (MLS®) in February, representing a 77 per cent increase over February 2009. The average price for these transactions was up 19 per cent year-over-year to $431,509. Sales and average price increases represent both increased demand for ownership housing and the base year effect, which involves a comparison of economic recovery this year to a period of economic decline last year.

“Increases in existing home sales and average price were noted across the GTA in low-rise and high-rise home types. Similar rates of growth were experienced in the City of Toronto and surrounding 905 regions,” said TREB President Tom Lebour. “This suggests that first time, move-up and down sizing buyers are all active in the existing home marketplace.”

New listings also increased in February, climbing 24 per cent compared to the same month last year.

“Annual growth in new listings is expected to continue. New listings growth will start to outstrip sales growth as we move through 2010,” said Jason Mercer, TREB’s Senior Manager of Market Analysis. “As the market becomes better supplied, we will see more sustainable single-digit rates of price growth.”

Compare TREB’s monthly sales volume over the past 3 years

This chart plots monthly MLS® sales for the current year and the previous three years.  The recurring seasonal trend can be examined along with comparisons to previous years for each month.

Developing trends

It is clear from the chart above that we are currently riding a wave of added sales volume that began in the fall of 2009. Of particular interest is the fact that sales during the months of September to December of 2009 were the highest in the past 3 years.

Summary of announcement

The Bank of Canada has decided to leave its target for the overnight lending rate at 0.25 per cent, and further reiterated its “conditional” commitment to keep the rate at this level until the end of the second quarter of this year.

The overnight lending rate is the rate at which major participants in the money market borrow and lend funds to each other for one day. Other benchmark rates like the prime rate generally track the up and down movements of the overnight rate.

Analysis of announcement

The Bank of Canada acknowledged that economic activity in Canada has been slightly stronger than forecast in its January Monetary Policy Report (MPR), with the core inflation rate higher as well. In past releases, the Bank suggested that the risks to its outlook for consumer price inflation were weighted to the downside because it was felt that the high value of the Canadian dollar vis-à-vis the US could hamper the recovery in exports south of the border and thus broader economic recovery in Canada.

In the latest statement, there was no mention of a weighting toward downside risks. This adds even more credence to the view that interest rates will be trending upward in the second half of 2010 as the Bank takes action to ensure that consumer price inflation remains near its two per cent target as economic recovery takes hold. The argument is that if interest rates remained at current levels for too long the level of consumer spending would push price growth (inflation) beyond the Bank’s target.

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Jason Mercer – TREB Senior Manager of Market Analysis

February 22, 2010 – February 28, 2010

Here’s a look at the Real Estate Market in Vaughan over the last 7 days:

Vaughan Real Estate Market Overview

There were a total of 183 homes listed in the 8th week of 2010 and a total of 76 sales. The breakdown of new listings includes 32 condos, 23 townhomes, 16 semi’s or links and 112 detached homes with 27 being priced under $500,000, 77 priced between $500,000 and $1,000,000 and 8 priced over $1,000,000.

The breakdown of sales includes 11 condos, 13 townhomes, 12 semis and 40 detached homes with 10 selling for under $500,000, 29 selling between $500,000 and $1,000,000 and 1 selling f0r over $1,000,000.

Here is the breakdown for week 8:

Condos

• 32 Condos Listed
• Low: $226,900
• High: $549,900
• 11 Condos Sold
• Low: $242,000
• High: $415,000

Townhomes

• 23 Townhomes Listed
• Low: $350,000
• High: $499,900
• 13 Townhome Sold
• Low: $350,000
• High: $565,500

Semi-Detached (includes Linked Homes)

• 16 Semis Listed
• Low: $359,500
• High: $549,900
• 12 Semis Sold
• Low: $349,900
• High: $525,000

Detached Homes (under $500,000)

• 27 Detached under $500,000 Listed
• Low: $415,000
• High: $499,900
• 10 Detached under $500,000 Sold
• Low: $386,000
• High: $499,999

Detached Homes ($500,000 – $1,000,000)

• 77 Detached between $500k – $1,000,000 Listed
• Low: $518,000
• High: $989,000
• 10 Detached between $500k – $1,000,000 Sold
• Low: $500,000
• High: $770,000

Detached Homes ($1,000,000 and up)

• 8 Detached over $1,000,000 Listed
• Low: $1,289,000
• High: $2,890,000
• 1 Detached over $1,000,000 Sold
• Low: $1,599,000
• High: $1,599,000

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Looking for a more detailed report on Vaughan Real Estate including a list of homes for sale or sold in your neighbourhood?

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