GTA Market Peaks in the Spring
We can put together a real estate calendar and get a fairly good idea of what is going to happen in the Toronto real estate market, world economic crises aside.
Each year the market peaks in the Spring. That’s usually the high water mark for the year.
Let’s look back over the last few years an see what happened. Here are the years, the average prices of single family homes in the GTA and the month in which that occurred:
We are looking at nine years in total. In five cases, the market peaked in May. On three occasions, it peaked in April, and once it was June.
It is noteworthy however that usually the Spring peak in the market was also the highest price that the market reached all year. There were two exceptions.
In 2007, the October peak was the height of the market for that year.
In 2009, the market got off to a slow start and the Spring peak was delayed until June. That peak was the height of the market for that year. Spring 2009 was the time when the automotive bailout was taking place following the October 2008 worldwide stock market crash. And, the following October, that is, October 2009, also saw the height of the annual market. That was probably due to the fact that the Spring was so poor.
So, what do we know from all of this:
• The market generally peaks in the Spring (7 times out of 9)
• May is usually the peak (5 times out of 9)
• The height of the market for the calendar year takes place in the Spring (7 times out of 9)
You can also track the escalation in the market, year to year. There substantial, progressive increases in value.
Brian Madigan LL.B., Broker is a Manager at RE/MAX West Realty Inc., Brokerage 416-745-2300.