Expect strong start to 2010 to continue

February 12, 2010 -- More than 4,986 homes changed hands throughout the Greater Toronto Area in January, far exceeding last January’s recessionary low of 2,670transactions. Most significantly, last month’s figure is comparable to sales in January 2008 and 2007, the latter of which finished as the strongest year on record. As we approach the traditionally busy spring season, we can anticipate an increase in activity. There are a number of reasons why spring usually shapes up to be an active period of the year for the resale housing market. Families often coordinate their moves with the school calendar, purchasing in spring to provide for a late summer closing. Others are simply motivated by every spring’s promise of a fresh start. Many buyers are also prompted to begin their search when the snow has melted, making streets and properties more accessible. Sellers meanwhile, choose this time of year as it affords the opportunity to extend household fix-ups to the outdoors, contributing to improved curb appeal and salability.

There are currently 12,052 properties available in the GTA through the Multiple Listing Service and this figure is expected to climb in the coming months as homeowners react to the recent months’ market strength. More competition means that house prices will likely stabilize however; increased activity will also necessitate quick decision-making.

By contrast, typically the summer months afford many of the same benefits as the spring market, without the fast pace. Last summer’s activity though, was markedly stronger than previous years, reflecting both pent up demand from the recessionary months prior and an emerging all-season attitude toward real estate in our city.

During the fall months another spike in activity is usually seen. Typically, the fall market reaches a crescendo in October, when between 6,000 and 8,000 homes change hands, in comparison to more than 9,000 transactions that often take place at the height of the spring season in May.

Throughout the winter months, we generally see more moderate activity. This can benefit buyers, who have the opportunity to achieve an attractive purchase price from motivated sellers. There are however, also advantages for sellers. Buyers who are searching for a home at this time of the year tend to be serious about making a purchase and as such, ineffectual showings are not the norm. Houses often look their holiday best throughout the winter months as well, which can yield favourable turns.

Often changes in our personal lives dictate the time of year when we enter the real estate market and when this is the case, you can count on a Greater Toronto REALTOR® to counsel you on achieving the most favourable outcome in your transaction.

For more information on working with a REALTOR® please visit www.TorontoRealEstateBoard.com
For more information the Government of Canada’s pledge to match donations to relief efforts until February 12th please visit www.acdi-cida.gc.ca

Tom Lebour is President of the Toronto Real Estate Board, a professional association that represents 28,000 REALTORS® in the Greater Toronto Area.