Sales figures collected from real estate boards across the country in October indicate that the Canadian housing market is returning to a balanced market.
“Six months ago we were in a strong seller’s market, now we have moved into a more balanced market position,” said Rick Snell Past President of Ottawa Real Estate Board. “Some properties are still receiving multiple offers but this is happening much less often than was the case in the spring.”
However, sellers should be aware that demand for homes is strong, yet selective. Buyers recognize that selection, although dropping is still generous and they’re looking for properties priced competitively.
The outlook for mortgage rates and income growth over the next year is favourable. The average home selling price could increase moderately next year and remain affordable for the average Canadian household.
Ontario - October price growth reflects healthy housing market conditions
Toronto, November 3, 2010 - Greater Toronto REALTORS® reported 6,681 sales through the Multiple Listing Service® (MLS®) in October 2010. This represented a 21% decrease compared to the 8,476 sales recorded in October 2009. Through the first ten months of the year, sales amounted to 75,582 – up 1% compared to the January through October period in 2009.
"The annual change in sales and average selling prices has been quite uniform across the GTA and by property type as the market has balanced out from record levels of sales in the second half of 2009 and first few months of 2010," said Toronto Real Estate Board (TREB) President Bill Johnston.
"The composition of GTA home sales does differ depending on location. Condominium apartments accounted for 42% of total sales in the City of Toronto and almost 60% of sales in TREB's central districts," Johnston continued. "In regions surrounding the City of Toronto, in contrast, low rise home types accounted for almost 90% of transactions."
The average price for October transactions was $443,729 – up 5% compared to the average of $423,559 reported in October 2009. The average selling price through the first nine months of the year was $430,802.
"The average selling price in the GTA has continued to grow relative to 2009 because home ownership has remained affordable," said Jason Mercer, the Toronto Real Estate Board's Senior Manager of Market Analysis. "A household earning the average income in the GTA can comfortably afford the mortgage payments associated with the purchase of an average priced home."
The median price was $366,000 in October, from the $357,000 recorded during October of 2009.
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