Buy essay on Residential Real Estate Market in Toronto

Today, the development of the residential real estate market in Toronto affects consistently the socioeconomic development of Toronto because changes in the price of real estate in Toronto as well as other trends, such as rise of demand and supply or, in contrast, the drop of supply and demand may slow down the economic development of Toronto or vice versa accelerate it[1]. In this respect, the study of the current situation in the residential real estate market in Toronto can help to identify the major trends in the residential real estate market and its potential impact on the local economy. At this point, it is worth mentioning the fact that the residential real estate market in Toronto is characterized by certain positive trends after a consistent decline in 2008 but the price of real estate keeps growing consistently that makes residential real estate unavailable to a large number of people in Toronto.

Purpose or objective of paper

The purpose of the study is the research of the current situation in the residential real estate market in Toronto. The study aims at the understanding of the current trends in the residential real estate market to develop a forecast concerning the development of the market in the future and its possible impact on the local economy as well as social stability in Toronto[2]. In addition, the study aims at the analysis of the changes that have occurred in the residential real estate market in Toronto in the course of time.

Theoretical Framework

Basically, the changes and development of the real estate market in Toronto occurs under the impact of the same marketing factors as any other market. In this respect, it is important to dwell upon the balance of supply and demand on the residential real estate in Toronto[3]. It proves beyond a doubt that the change in the supply and demand will affect the situation in the residential real estate market in Toronto. On the other hand, it is obvious that the regulatory policies conducted by the authorities and behavior of consumers can also affect the situation in the residential real estate market in Toronto consistently.

Application of Theory, Proof of the principles or issue

The application of the theoretical assumptions concerning the balance of supply and demand, consumer behavior and regulatory policies of the local authorities proves that the current situation in the residential real estate market in Toronto is quite difficult[4]. In actuality, the demand and supply are misbalanced. The demand surpasses the supply of the residential real estate that leads to the consistent rise of prices on the residential real estate. At the same time, the panic among consumers along with the inability of the local authorities as well as the federal government to balance and maintain the residential real estate market stable led to the crisis that struck the market, especially in 2008.

Information source and methods of analysis

The analysis of the actual situation and the development of the residential real estate market in Toronto in the course of time involve the use of statistical methods of analysis. To put it more precisely, the study uses the statistics concerning the price and sales volume of real estate in Toronto in the course of time[5]. The data may vary but it is important to take statistics within a couple of decades or even more to obtain reliable outcomes concerning the trends of the development of the residential real estate market in Toronto.

Case study, Illustrations, Graphics

On analyzing the current situation in the residential real estate market in Toronto and the analysis of the existing statistics, it should be said that the main trend in the development of the market is the steady rise of prices. In fact in the 2000s, the residential real estate prices in Toronto were practically galloping[6]. At the same time, the sales volume dropped, especially in 2008 and 2009. However, 2010 reveals certain revival in the market and the residential real estate market in Toronto demonstrates positive trends.

Sales Volume Statistics

2010 Monthly Sales versus 2009

The chart shows the monthly sales volume in 2009 and 2010. The chart reveals the record high 10,430 sales of single family homes in March 2010 that is 43 percent increase over the sales volume for February 2010. In such a way, it is possible to forecast the recovery of the residential real estate market in Toronto in 2010, on the condition that the trend to growth will persist in the course of the year.

Annual Sales Volume 1980-2009

This chart shows the annual sales volume from 1980 to 2000 related to single families. The sales rose and dropped cyclically. The rise of sales was normally replaced by the drop and 2008 was the last consistent sales drop within the last decade and a half since the mid-1990s.

Sales Year-To-Date

This chart shows resold homes to the end of March for each of the years 1991 through to 2010. 2010 shows the highest sales level.

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Average Selling Prices

Average Selling Price 1980-2009

This chart shows the average price trends within the last 29 years. The housing price has grown steadily reaching highest points at some periods, like in 1989 and in 2009. 1989 was the turning point after which the decline has started until the mid-1990s after which the growth has started. Therefore, it is possible to expect a decline in home sales in Toronto in the nearest future.

Average Monthly Selling Price 2010 vs 2009

The chart shows changes in the selling price of homes. The average selling price of homes that sold during March was $434,696 – which represents a marginal increase over the $431,509 reported for February and a 20 percent increase over the $362,052 reported for March 2009. The average selling price year-to-date for 2010 is $427,948 that is about 8 percent higher than the average selling price for 2009 of $395,460.

Inventory

The chart shows the number of active properties for sale in 2009 and three months of 2010. The chart allows comparing trends in the housing market at the beginning of 2009 and 2010. There were 18,684 properties listed for sale in March 2010 which represents a 29 percent increase over the number of properties listed for sale in February, as well as a 21 percent decline from the number of properties listed for sale in March 2009. The number of new properties coming onto the market in March was 42 percent higher than a year ago, but the high sales volume in March has kept the inventory of properties for sale 21 percent lower than a year ago at month end.

Home Sales by Type/Price

Home Sales by Type of Property:

The chart shows sales of homes in Toronto related to different categories of property such as single family detached, semi-detached, townhouse etc. As always, single family detached homes comprise the core of all sales whereas condominium apartments hold the second place.

Home Sales by Price Range

The chart shows monthly single family residence sales breakdown by price. Homes in the $300,000 – $400,000 price range produced the highest sales volume during December. The difference in the sales of homes at the highest and lowest price reveals the average sales of homes in Toronto within a month.

Conclusion/Recommendation

Thus, in conclusion, it is important to lay emphasis on the fact that the residential real estate market in Toronto develops cyclically. Today, the residential real estate market is reviving that implies the possible growth of the market and balancing of the supply and demand. In such a situation, the local authorities should stimulate consumers to buy real estate through liberal fiscal policies.

Works Cited:

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Lundrigan, M. Invisible walls: Barriers to housing. Canadian Housing, 9(1-2), 1992, 8-10.

Murdie, R. A. “Housing Affordability and Toronto’s Rental Market: Perspectives from the Housing Careers of Jamaican, Polish and Somali Newcomers”, Housing, Theory and Society, 20 (4), 2003, 183-96.

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