Since the summer of 2012, the media has been rife with speculation about the imminent collapse of the Toronto real estate market fueled by a decline in unit sales in the second half of 2012.
Maclean’s article “Inside the real estate crash of 2013” reverberated across the city and alarmed our residents. Another article characterized the 2012 fall market as “…a dramatic softening in sales and prices that started last spring and…… by December, was virtually dead.”
But, is this factual? We decided to analyze the statistics for the second half of 2012 in our local neighbourhoods (excluding condos) to see if the alarm the media is sounding is truth or sensationalism. Because the first half of every year has the highest sales activity, and 2011 and 2012 were both similarly hot markets during this time, we decided to compare apples with apples and use data comparing the second half of 2012 to the second half of 2011 to paint the true picture.
Once again our research suggests markets are local in nature and that unit sales were not down across the board. In fact, unit sales were actually up in Cedarvale, Forest Hill and Upper Forest Hill in the second half of 2012.
Many agents are reporting a significant increase in activity on the properties they listed this year. We can report that the market right now is more active than it was in the fall of 2012 and is definitely not crashing; instead it is healthy and balanced with many deals happening between sellers that are realistic and willing buyers that are level headed.
The moral of the story is not to drink the Kool-Aid being dished out by the media because it could amount to a lost opportunity for you. Instead, discuss your real estate objectives with your trusted REALTOR who is more in tune with what’s really happening, up to the minute in your specific neighbourhood, to get advice on what’s best for you.
We feel the market will continue this balanced pattern in 2013 because demand for housing in our neighbourhoods is strong.
We would love to have a conversation so please feel free to share your opinion at the end of the blog.