News is getting better for Sellers
Uhh-oh...could the market be improving slightly for Sellers of real estate? The Toronto Real Estate Board reported sales of 6,171 sales, down from March 2008 sales by 7%; the smallest year over year decline in the last five months! The average price for March transactions was $362,052 - down less than 5% from the same month last year. Can you say that about your stock portfolio??
Given the challenging economic times. the Toronto market is holding up reasonably well. The seasonally-adjusted rate for March increased to 65,600 which was up 35% from the 10 year low reached in January.
A couple of months ago, when times were at their worst I said there was a window for making a great purchase. With these numbers I see that window closing just a little. Out on the streets we're seeing Sellers who have just listed their homes decline conditional offers from Buyers who need to sell a home first. They are not wanting to wait for someone else to sell their home.
If you're thinking of Buying a home there are still many good deals on the market and these are typically to be found on properties that have already been on the market a while. However, it is getting more competitive now for nice looking properties that have just come onto the market as new listings. There have been a number of high ticket purchases in our area telling me that some of the money is starting to come off of the sidelines. Today alone Brooklin stats reported 8 propertys sold or sold conditional from 350K to 510K.
Government incentives and low, low interest rates are also adding to increased affordability.
Where I live in Whitby there was a 79% increase in Units Sold in March as opposed to February. The Sales to New Listings ratio was 53.07% which is firmly in "balanced market" territory. In January that percentage was below 35% - a buyer's market according to Canada Mortgage and Housing standards.
The average days on market is still around 40 days in our area, give or take a little and the average List to Sale percentage is holding at 97% of asking price. This indicates how much Seller's are getting compared to the price they are asking for their homes.
Sell First
If you don't know how, call us. If you want to buy a home and your's isn't even on the market, your negotiating position can be pitifully weak. Unfortunately you are competing with other Buyers who don't have a home to sell. Sellers are usually willing to accept a lower price if they don't have to wait for you to sell your home first.
The graph below illustrates why I was advising to buy in January. Since that time, average days on market has been declining and the Sales to Active Listing Ration has been increasing. These two trends begin to favour Sellers. My prediction is these trends will continue over April, May and possibly June before declining again in July and August...another good time to buy.
