Monday, July 20, 2009

Be careful when using and quoting TREB stats and press releases

I was asked:

Is this information, that is in the News and on the 'net, abound house prices
and multiple offers, true?
If so, could my house value really have gone up
more than 16% this year. If so, what was the benchmark to start from.
16% on
top of zero is still only 16%, however, 16% on top of 1 Mill. is a lot. this a bunch of "feel good BS" from the likes of Stats-Can.

Good question:

Yes, be careful about the reported real estate prices, the stats are often mis-quoted

When TREB reports 16% they are usually reporting that sales VOLUMES have increased 16% compared to the same month last year

Prices are currently UP about 4 to 5% since the low of January of this year after falling about $50,000 (from about $398k in April of 2008 to just under $350k in January of 2009) which is a drop of about 12% so we are still down compared to the zenith in spring of '08

TREB often reports that real estate is up, say 10%, but they are often referring to the sales volumes, not the prices. The average price is really only that, an average price, and areas can vary widely from the average. As well, you only need a few million plus dollar sales in one area to increase the average price in an area substantially, so again, be careful when using averages for your immeditate area.

Average prices are useful to watch trends over time.


again, sent with and not the hotmail crap


Toronto Real Estate Board (TREB) Average Prices and Graph

For more information please contact A. Mark Argentino

A. Mark Argentino, Broker, P.Eng.,
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc., Brokerage
2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1

BUS. 905-828-3434
FAX. 905-828-2829

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