Harvey Kalles Real Estate Market Report and Listings Sold and Leased: October 20 to November 2, 2012

Posted by: Elise Stern, Created date: November 11, 2012


548 Hillsdale Avenue East, listed and sold by Harvey Kalles Real Estate agent Janine Sheeres.

October’s numbers are out from the Toronto Real Estate Board… and the more things are changing in this shifting fall market, the more they’re staying the same. Adjusted for the number of business days in the month for 2011 and 2012,transactions were down 15.6% year-over-year in October, and yet prices were up 6.2%. Even when run through the MLS® Home Price Index, which provides an “apples-to-apples” comparison in terms of home attributes (which makes for a more accurate picture of what the market is actually doing), adjusted prices are still up 5.1%.

There are quite a few reasons these numbers may be coming out this way.

Historical perspective: Jason Mercer, TREB’s Senior Manager of Market Analysis, has been saying the same thing, essentially, for the past few months about Toronto’s historical real estate numbers. That is, although there are more homes on the Toronto real estate market right now than there have been for the past couple of years, from ahistorical perspective, there are still comparatively few – which means that prices are still high, and still climbing (albeit more slowly than before), because limited supply and high demand means higher prices.

A shift in the market: Housing starts – that is, the number of new-build units that are starting construction in each month – are down in October across Canada, including in Toronto. This does point to some level of slowdown in the market in general… whichmay actually be a good thing for the market in the long term.

However, it’s important to remember that there is no one “Toronto” real estate market: different price points, types of home and geographical locations each have their own “mini-markets” that may or may not jibe with what’s going on in the Toronto real estate market in general. That’s why it’s important to engage a talented real estate agent who knows the market you’re buying or selling in, and can guide the process for your benefit.

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