The TREB has just released their November 2008 sales numbers for Toronto so let's have a look.
In Toronto (416 area) the sales were down from 3,426 in Nov 2007 to 1,523 in November 2007. This means that the sales declined 56%!
The average price in Toronto declined from $433,859 in Nov 2007 to $390,225, for a cool 10% decline!
The 905 code sales weren't that bad compared only to 416 sales. The sales went down from 3,887 to 2,117 year over year, for "only" 46% decline. The average price in 905 area was $353,012 down from $358,391 recorded in November of 2007.
The Toronto listings on MLS rose from 18,309 to 27,037 year over year, which is 32% up.
The TREB continue with their laughable comparisons of 2008 prices with 2006 (the prices rose marginally between 2006 and 2008), but I suspect soon enough they will have to move back to 2005, then 2004, etc. I guess they'll stop only when they reach the last century
.
Here is a quote from the actual press release:
Quote:
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“Homeownership in the Greater Toronto Area continues to be an affordable, stable and secure investment,” said Ms. O’Neill. “Home buyers and sellers should be confident about their bricks and mortar investment which provides shelter and a place to raise a family.”
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Now there are several inaccuracies in this statement. First GTA homeownership is not affordable at all, second I don't see anything stable about investment for which the demand went down by over 50% year over year, and prices are down over 10% (416 codes). To put this number in perspective almost anybody who bought with less than 10% down (and this was the majority of house buyers in Toronto) since November 2007 is now with negative equity and owes more to the bank than their house is worth.
Here is another quote worth reading:
Quote:
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“While homeownership offers immediate benefits and long term value by way of equity, it also provides tax benefits over time,” said Ms. O’Neill. “If you bought a house five years ago, it would be worth more than 20 per cent more today.”
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Whoa, 20% up that almost makes up for the inflation during these 5 years, or does it? If you compare the average monthly gold price in October 2003 (5 years ago) and in October 2008, you'll find out that the price rose from $
378.92 to $754.60 which is 99% (source:
http://goldinfo.net/londongold.html). Make your own conclusions.
You can read the TREB press release here:
http://www.torontorealestateboard.co...8/nr120408.htm
12-04-2008, 04:37 PM
Toronto real estate market crashes in November!
Who will they fool with this report. This price comparison is inadequate. The truth is the real estate market is going down whether we like it or not. If you bought your house to live in it, not for investment there is no reason to panic.
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