The Globe and Mail recently published an excellent look into Toronto real estate month-to-month pricing and whether or not it’s helpful to the average homeowner to consider these statistics when deciding to jump into the Toronto real estate market.
A look at month-over-month Toronto real estate prices.
In an interview with the chief economist for the Canadian Real Estate Association Gregory Klump, Klump says that the balance between supply and demand is the most important metric to consider when looking at all of the numbers related to month-over-month or year-over-year home prices.
Month-To-Month Average Home Prices Are Still Important Figures
Klump also said that the Canadian Real Estate Association encourages Canadian home buyers to anticipate increases in interest rates in the future when applying for mortgages, because a number of Canadians may qualify for more mortgages than they can afford.
When looking at the home price statistics, some type of context is needed to truly gauge market health. For example, when looking at the United States real estate market the year-over-year numbers make more sense because of the trouble they’re in right now. Short-term numbers can’t truly convey the problems seen there, and in Canada the real estate market pricing seems distorted because of the rush to buy before the HST was implemented and when interest rates were at record lows.
Klump said that in these cases, looking at the number of months of inventory and the number of days homes spend on the market are more important.
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