A sold sign on a Toronto home.
Sales of existing homes in full recovery after downturn
October 19, 2009
Staff Reporter
Existing home sales increased by 34 per cent in the first two weeks of October, compared to the same time a year earlier, according to figures released today.
The Toronto Real Estate Board reported 3,631 sales in the first half of the month compared to 2,700 last year.
Average prices were up 17 per cent to $414,475.
October 2008 was the start of a global credit crunch that seized consumer confidence. The prior month, investment bank Lehman Bros. filed for the largest bankruptcy protection in history, causing markets to drop dramatically.
"While demand for existing homes has remained strong, it is important to recognize the context of current statistics," said TREB president Tom Lebour. "We are now making comparisons to the fall of 2008, when we experienced a marked decline in sales and average price."
Year to date, sales are already up six per cent compared to 2008.
TREB says a lack of listings will contribute to tight market conditions going into the fourth quarter. However, more listing are expected in 2010 as consumers regain confidence and list their homes while buying move-up properties.
"Expect more listings in 2010 as home owners react to the price gains experienced in the second half of 2009," said Jason Mercer, TREB's senior manager of market analysis.