The Toronto Real Estate Board has published the Market Watch issue for January 2007. Claiming that the year has started with a boom. Over the all of the districts for the Toronto MLS® system there were more sales than in any other recorded January, with a total 5,173 homes sold. This is an increase of 12.8% over last years January. The North districts had an increase of over all sales but there were a few surprises when looking at individual areas.
On a positive note,
Richmond Hill home sales saw an increase in sales volume and in the N03 district the average home sale price surged forward 17.7%, over Jan 2006, to $426,800. On the other hand
Aurora, Ontario, home sales volumes stayed almost the same and the average sale price decreased by 12.8% from Jan 2006.
But wait, Don't PANIC. These are both examples of why statistics are dangerous. Although it is true that the average sale price in Aurora, Ontario, was down by a whopping 12.8% that does not mean that the average home has lost 12.8% of its value. It only means that the home buyers that were active enough to purchase homes, in January 2007, were looking for homes that were (on average) 12.8% lower in price than those looking in 2006. So more homes in lower price ranges sold and fewer of the higher priced homes sold. In February we may see far more of the $600,000 plus homes sell and the average sale price could jump to $500,000 or more. All because the home buyers in that price range may be chaffing at not having found the right home in January and so those sales may tip the scale in the opposite direction. Either way the value of the average home is not nearly as volatile as the average home sale price.
"Lies, damn lies and statistics" I can never remember which famous person said it but it is still true. I will keep providing them because everyone always wants to know, that and I need to analyse them for myself and my clients anyways, but one always has to keep in mind that although the statistics do not lie, the perspective that one uses the statistic may not always reveal the truth.
If you have questions about the
Richmond Hill, Aurora or York Region real estate markets please feel free to ask me. I would love to help you with all of your real estate experiences.
Andrew Hodge
