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Market Watch – March 2009
In March 2009, Greater Toronto REALTORS® reported 6,171 sales –
down seven per cent from March 2008, representing the smallest year-over-year decline in the last five months. The average price for March transactions was $362,052 – down less than five per cent from the same month last year.
“The Greater Toronto housing market has stood up very well given the challenging economic times the world has experienced in recent months,” commented TREB President Maureen O’Neill. “In fact, over the past two months, the situation in the housing market has improved.”
The seasonally-adjusted annual rate of sales increased to 65,600 in March – up 36 per cent from the ten-year low reached in January.
“Sales in March increased at a rate over and above what would be expected from the normal spring-time bump,” said Jason Mercer TREB’s Senior Manager of Market Analysis. “A greater number of households have taken advantage of increased affordability in the housing marketplace.”
The median price in March was $317,500 from the $326,000 recorded in March of 2008. The median price in March was $317,500 from $312,900 in February 2009.
Source: Toronto Real Estate Board
Kirby Chan
Sales Representative
Forest Hill Real Estate
info@kirbychan.com
www.KirbyChan.com
416.305.8008
By the way… I’m never too busy for your referrals.
TREB MARKET WATCH
The average GTA price in February 2009 was $361,305. During the same period last year, the Toronto MLS system recorded an average of $382,048.
For February 2009 recorded sales were 4,120 down from 6,015 sales recorded during the same period last year. A 32% drop in sales.
“A considerable number of transactions continued to take place in February 2009. Motivated buyers and sellers, who were aware that market conditions changed over the past few months, were able to negotiate transactions acceptable to both parties,” said Toronto Real Estate Board President Maureen O’Neill.
On a month-over-month basis, sales and average price were above January levels of 2,670 and $343,632 respectively. The housing market is seasonal. Traditionally, in the first half of every year, sales and average price climb to their highest levels in late spring before trending lower from July onward.
“While the economic downturn has had an impact, the GTA housing market is resting on a solid foundation. Current home prices and mortgage rates suggest that GTA homes have become more affordable on average,” according to Jason Mercer, TREB’s Senior Manager of Market Analysis. “A greater number of home buyers could take advantage of this affordability once their positioning in the economy becomes more certain.”
Typically the spring real estate market tends to experience more activity and with the Canadian economy experiencing a period of low mortgage rates and strong immigration, this trend could continue. According to Statistics Canada, Canada welcomed 247,202 permanent residents in 2008, 70,000 more than in 1998, and well within the Government’s planned range of 240,000 to 265,000 new permanent residents for 2009.
The median price in February 2009 was $312,900 from the $324,000 recorded during February of 2008.
I’m never too busy for your business and any of your referrals.
Going above and beyond for my clients,
Kirby Chan
Real Estate Sales Representative @ Re/Max
info@kirbychan.com
www.KirbyChan.com
416.305.8008
Toronto Real Estate
Kirby Chan
Nice headline right?
If you thought you’ve seen it before, than you must have seen the Front Page of Tuesday’s Globe and Mail. The Sub-heading mentions an 11 per cent decline in prices and a 44 per cent drop in Ontario housing sales in large RED print, based on the December 15th press release issued by the Canadian Real Estate Association.
The most important part of the article is at the bottom.
CORRECTION: “The national average resale home price did not fall by 20 per cent after the onset of the last recession in the early 1990s. After a retreat in 1990, the national price rebounded for a few years and then fluctuated. Incorrect information was published Tuesday.”
Don’t you love it when the media exaggerates to sell newspapers and advertisements? Reminds me of a quote “Numbers don’t lie, people do”. I wonder why they did not put the correction on the front page with a BIG BOLD Heading.
I would like to share with you a story told by Michael Polzler from Re/Max that really hits the bulleye with what the media can do.
It is of a hot dog vendor in Chicago who sold the very best hot dogs by the side of the road. His business was booming, people loved his hot dogs, and his business steadily increases month after month. The man loved his business and believed in the need to provide great food at a great price.
This man was so busy advertising and selling his hot dogs and making lots of money, that he didn’t even have time to read the newspaper or listen to the radio. Consequently, he never heard a word about a predicted recession or the need to cut back to save for the potential economic slowdown. As long as he continued to offer his delicious hot dogs, his customers bought them. He kept selling, and they kept buying.
Then one day his college educated son told him that an economic recession was surely coming. His son told him that people wouldn’t have enough money to buy his hot dogs. The successful hot dog vendor believed this, so on his son’s advice, he cut back on his advertising. Additionally, he started ordering less supplies and product, because after all, people would be cutting back soon.
He even went so far as to take down many of the billboards that lead to his roadside stand. And sure enough, people stopped coming to him. People stopped buying his hot dogs, and he eventually went broke.
Then he thought to himself. “How smart my son is in predicting this.”
The lesson is to not be influenced by what you read in the newspapers or hear on your television. It’s true that market conditions have changed, but human nature has not. Real estate is one of the largest investments people will make in their lifetime. It is also one of the safest. Get out and spread the word. If you bought a home in 1980 worth $67,000, that property is valued at over $300,000 today – an increase of 350 per cent and the profit is capital gains exempt. It’s no wonder that Canada has one of the highest home ownership rates in the world, at close to 70 per cent.
Kirby Chan
Real Estate Sales Representative @ Re/Max
info@kirbychan.com
www.KirbyChan.com
416.305.8008
Beginning in January 2009, Canadians will have an extra incentive to save money. It’s called the Tax-Free Savings Account (TFSA). Canadians will be able to contribute up to $5,000 annually to the TFSA, where returns and withdrawals are not subject to income tax. I can see how the TFSA would be useful for my clients. For example a couple wants to renovate their house in 3 years. In 2009, 2010, 2011 they each contribute $5,000 in their own TFSA and invests the money conservatively. By 2012, when it comes time for the renovations, they would have $33,000 instead of $30,000. In 2013, our couple here would have the option to re-contribute in full what they withdrew.
How the TFSA Works
- Any Canadian resident 18 years or older can open a TFSA
- You are allowed to contribute up to $5,000 a year
- Your earnings within the plan are completely tax-free
- You are not taxed on withdrawals
- Your TFSA contributions are not tax deductible
- You can withdraw money for any reason
- Your withdrawals can be re-contributed, in full, in a later year without affecting your regular annual contribution room
- Your withdrawals have no impact on government benefits such as Child Tax Benefit or GST credit
It seems like it’s not much but every little bit counts, especially with the power of compound interest. My economics teacher told me a story about compound interest that I never forgot.
One day little Kirby was thinking of ways to increase his $20/month allowance. So he thought of a plan and he suggested it to his father, ” Daddy, let’s change my allowance to a daily allowance. You’ll give me 1 penny on the 1st, 2 pennies on the 2nd and doubling it every day.” Kirby’s father counted and it was only 64 cents after the first week, so he agreed to it. Can any one tell me how much Kirby’s father owes his son after 30 days?
Kirby Chan
Real Estate Sales Representative @ Re/Max
info@kirbychan.com
www.KirbyChan.com
416.305.8008
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My blog is – http://kirbychan.wordpress.com
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I am a member of the Toronto Real Estate Board (TREB) www.torontomls.net. I use Rogers wireless service and use bell internet service at home. I use gmail, yahoo mail and hotmail. I have a PS3 from playstation and a wii from nintendo. I drive a Mercedes Benz B200 from mercedes-benz. I live in a detached house with four bedrooms and 4 bathrooms. My basement is unfinished. My wife and I renovated our kitchen last year. Other minor renovations were interior paint, light fixtures, cornice mouldings, built-in cabinetry in Laundry and wallpaper from farrow & ball and romo fabrics. Please vist http://decor8blog.com/ for great interior design ideas. I would like my website and blog to be as popular as http://www.topagent.com/ and http://blog.topagent.com/
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Kirby Chan
Real Estate Sales Representative @ Re/Max
info@kirbychan.com
www.KirbyChan.com
416.305.8008
