(Ontario Real Estate Source)
By Brian Madigan LL.B.
The sales in the GTA for single family homes are reported by the Toronto Real Estate Board to be the second best March ever.
March was a good month, but how good?
Let's see how many homes have sold in the month of March since 2004:
2004..........9,076
2005..........7,904
2006..........8,707
2007..........8,518
2008..........6,631
2009..........6,171
2010..........10,430
2011…….....9,262
The average number of monthly sales in March is 8,337. That means that March 2011 is 11.09% higher than the average over the last eight years. It is risky to go back much further than that since the population was smaller.
However, it is even riskier to compare it to March 2010. That would show an 11.19% decrease. There were 1,168 fewer sales in the month of March 2011, than the month of March 2010.
That's really not that many, and it doesn't spell doom.
You have to remember that there was a world wide financial crisis in October 2008.
The stock market had lost half its value. When 2009 started off the automotive industry was on the brink of bankruptcy. People weren't buying homes. The economy settled down following the government bailouts and the housing market normalized.
There was a lot of pent-up demand from the Spring of 2009. Some waited a few months, while the others waited an entire year. Consequently, March 2010 was a trend setting month in a year that recorded the highest number of sales ever.
So, what does that mean? It simply means that March 2010 was a great month. It doesn't mean that March 2011 was a bad month showing numbers that are 11.19% off the 2010 record.
If you look at the numbers closely, you will see that it was rather steady and normal. You always have to look behind the headlines. All in all, this looks good for an active Spring market.
Brian Madigan LL.B., Broker is an author and commentator on real estate matters, if you are interested in residential or commercial properties in Mississauga, Toronto or the GTA, you may contact him through Royal LePage Innovators Realty, Brokerage 905-796-8888
www.OntarioRealEstateSource.com
