BEST JUNE ON RECORD ECONOMY ON THE REBOUND
In June 2009, the Toronto Real Estate Board reported a record of 10,955 sales, up 27 per cent from June 2008. The average price for June transactions was $403,972 - up by two per cent compared to the same month last year. See Full Report [in PDF format]
Ever since March, I have been advising my clients that all signs were clearly pointing to a fast real estate recovery in Toronto. At the time, we were starting to see growth month-over-month in sales, but the "chicken littles" in the media and financial community were still promoting the doomsday scenario. My advice had been for buyers to enter the market as soon as possible.
Extremely low interest rates and a decrease in supply resulted in June MLS sales hitting these astonishing heights. Keep in mind that June is typically the 4th or 5th strongest month of the year. We are now in the middle of a seller's market. Most properties sell in a few days, many with multiple offers. Prices are increasing fast. Currently, the time to sell, or number of days on the market, has fallen to an average of 33 days. Chronic inventory shortage exists in most areas. I expect that for the balance of 2009, we are going to see strong numbers.
On July 23, 2009, the Bank of Canada declared the recession essentially over, and predicted that Canada's economy would begin growing this summer after 9 months of stagnation and lead most of the industrialized world next year.
It appears to me that our economy is mending quite nicely and by late fall we may be back to business as usual. Despite what some doomsdayers still predict, the U.S. and the world is in a better place economically. We are now in recovery mode. By 2010 hopefully, these negative forecasts will finally be put to rest for more sunnier days.
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