Toronto Market Drops 7.02% in 2011
Ontario Real Estate Source
By Brian Madigan LL.B.
That should be some good news for the doomsayers!
Has the Toronto market finally succumbed to the worldwide decline in housing prices?
Let’s have a closer look.
The average price paid for a single family home in the GTA was $433,946 at the end of December 2010. So, that was also the starting value on the 1st of January.
The market rose and reached a peak of $485,520 by the end of May. It then declined to $451,436 by December.
When we do some calculations, there was a decrease from May to December (peak to the end of the year) of 7.02%. That occurred in 2011, so technically saying “Toronto Market Drops 7.02% in* 2011” is correct. It did take place in that calendar year, but clearly not the entire year. Headlines can be somewhat deceiving.
There is some value with a “year over year” view. That would take the end of December 2010 and compare it to the end of December 2011. That would show an increase of 4.03%.
Then, you could look to just the calendar year, which would show the same result, being 4.03%, because January 1st starts out with the December number.
This article is not intended to offer any explanation about the market or its direction whatsoever, just to point out that with the same facts, you can express a positive or negative opinion, depending of course upon your bias.
Be careful what you read; it can be dangerous!
* note the emphasis placed upon the word "in"
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