Toronto Real Estate Market Report
August2009
Prepared by Chris Kapches
Senior Vice-President

Although not a record breaking month, August produced stellar real estate results. August marks the sixth consecutive month of exceptional re-sale performance for the Toronto market place. In August 8,035 residential resale properties were reported sold by the Toronto Real Estate Board. This represents a 27 percent increase over the 6,318 properties reported sold in August 2008. As we move forward comparisons with the last months in 2008 will not provide meaningful statistical comparisons. Beginning last September, and continuing through to March of this year, Toronto’s resale marketplace was paralyzed by the implosion of the world’s equity markets. Based on current conditions, which are not expected to change, comparisons until April of 2010 will show very strong positive variances.
Given the number of reported sales for August it is not surprising that the average sale price remained strong. The average sale price for August came in at $387,921. The average sale price for August 2008 was $364,886, an increase of more than 6 percent.

As in the case of the number of reported sales, expect substantial positive average price variances to year-end and into 2010. Although the month of August is traditionally a slower period for high-end sales, this August sales remained strong. 172 properties having sale prices more than $1 million were reported sold. This compares very well will the 119 reported sold in 2008, and the 137 reported sold in 2007, which continues as the strongest year for the most resale properties reported sold in the Toronto marketplace. August’s sales in this category represents a 45 percent increase over reported sales in August 2008. The
most expensive area in Toronto remains north of Eglinton and west of Bayview Avenue (categorized as C12 by the Toronto Real Estate Board). The average sale price for August in this area was $1,308,576, down from $1,418,007 as the average sale price in July.

The on-going concern remains Toronto’s inventory of available properties. In August the number of available properties declined to only 15,682, a dramatic drop of 37 percent compared to the 25,076 properties available for sale in August 2008. The large number of reported sales is absorbing the available inventories, with few new listings coming to market. Since March 52,824 properties have been reported sold. On an annualized basis this would amount to 105, 648. This would smash the best year for properties sold, being 2007 at 93,193. Even if a steady flow of new listings was coming to market, inventory levels would be strained. Current listing levels are less than normal. For example in August only 10,632 properties came to market, down 11 percent from the 11,992 that came to market in 2008. Hopefully sellers intent on selling will capitalize on the current robust conditions and come to the market this fall.

Last month I reported that after July’s sales were reported the number of available properties in the Toronto market place dropped to only 2.3 months. In June it was 2.7 months. Using sales data from March of this year, average monthly sales total 8804 properties sold. This equates to only 1.78 months of available inventory at the end of August. This figure must be watched carefully.

Looking forward September’s numbers should come in at approximately 8000 properties sold. This is consistent with historical patterns. Historically low interest rates are the primary motivator of today’s sales. Add to this an improving economy, with unemployment remaining stable and perhaps improving, sales will remain strong. At the end of August 58,421 properties were reported sold for all of 2009. By year end total sales should come in at 78,500 properties reported sold, 6 percent better than the 74,552 that were reported sold in 2008. Although not a record breaking year, 2009 will be a strong year, especially when it is considered that at the beginning of the year real estate pundits were predicating sales of only 60,000 properties.