Before I get into this week’s milton ontario real estate market activity report, here’s some information from the toronto real estate board (treb):
Before I get into this week’s milton ontario real estate market activity report, here’s some information from the toronto real estate board (treb):
I received this information from a brokerage in Mississauga, and think it worthy of passing on to you . . .
Well, we beat the estimates again. Two weeks ago, I predicted 9,000 to 9,500 sales in July.
The market never slowed at all and in July 2009 we hit 9,951 sales reported to the Toronto Real Estate Board!!!!!
This next part is what is VERY important to pay attention to.
Right now the number of homes available for sale is at a critically low level. I’m going to repeat information from my previous message with some updated numbers. The number of sales this July jumped 27% over last year. The inventory has shrunk by 38% during the same time.
Currently the Absorption Rate (the percentage of inventory selling each month) is at an all time high. When the Absorption Rate (monthly # of sales/inventory) increases it causes prices to climb. When the number of sales increases, that’s good news. When the inventory can’t keep up with the number of sales, that’s BIG news.
Currently there are only 16,446 homes for sale. That means over 60% of the inventory is selling each month. History has shown us that an Absorption Rate of approx 30% to 35% give us a steady increase in prices. Anything above that causes prices to SHOOT up! Below I’ll show some examples over past years. If you look at it, you’ll see the pattern and identify that unless we get a huge influx of inventory (highly unlikely) prices are going to shoot up this fall. The big thing that could lower the number of sales is a failing economy. Well, according to the Bank of Canada, … the recession is OVER!
Month # of Sales Inventory Absorption Rate
July/09 9,951 16,446 60%
July/08 7,806 26,543 29%
July/07 8,912 20,694 43%
July/04 7,329 22,368 33%
July/01 5,807 19,484 30%
July/98 5,026 20,559 24%
July/95 3,721 27,610 13%
Well, this just serves to support my contention all along that the Milton Ontario real estate market is HOT, & getting HOTTER! Don’t be left out in the cold; get into the market now, while the getting is relatively good.
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I recently did a calculation for some clients, and here’s the body of the email I sent them:
Yes, things are humming along just fine in the Toronto real estate market. As the article below reveals, this was the best June on record!
Here are a few highlights – for area-specific details, look through the report below:
In June 2009, Greater Toronto REALTORS® reported a record 10,955sales, up 27 per cent from June 2008. The seasonally adjusted annual rate of sales in June was 100,700. ”The record result in June is testament to the fundamentally sound housing market in the GTA,” said TREB President Tom Lebour. “An increasing number of households have been confident in purchasing a home in the region’s affordable and diverse resale housing market.”
After a frigid winter that saw existing home sales plunge dramatically, the Toronto-area housing market continues to experience a fragile spring thaw.
The Toronto Real Estate Board reported 8,107 sales yesterday for April, down 7 per cent from a year ago, but less than the 47 per cent free fall experienced in January.
“Conditions in the resale housing market have improved markedly this spring,” TREB president Maureen O’Neill said.
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