Refuting the idea that "Pocket listings cut into MLS sales"

Pocket listings cut into MLS sales

Written by  Vernon Clement Jones

"........ Greater Toronto Area Realtors reported 7,765 transactions through the Toronto MLS system in March – that’s down 17 per cent compared from the 9,385 recorded a year early. It also means that for the first quarter of 2013, sales came in at 71,678, representing a 14 per cent slide from a year ago.

Realtors are blaming the slowdown on an ebb in demand, pointing more directly to the mortgage rule changes ushered in last year.

"While some households have put their decision to purchase on hold as a result of stricter lending guidelines or the additional Land Transfer Tax in the City of Toronto," said Toronto Real Estate Board President Ann Hanna, “other households simply haven't been able to find the right house due to a shortage of listings in some market segments."

Notwithstanding any Lobby Group's Talking points ... the abovementioned 14-17% "slump" is being compared to the 3rd best First Quarter in TREB history (2012 was also the 2nd Best First half in history).

In addition "Baby Boomer Grandma/pa" aren't selling their homes in keeping with "traditional pattern":
a) 65 ain't as old as it once was - grandpa/ma are staying working and leading active urban lives longer, so their house is still useful ie not a burden to maintain AND they like where they live;
b) they can live on income from their generation's much-more prevalent "retirement savings accounts" w/o cashing in house for funds to live on, as in previous generations;
c) they don't feel like trading in a familiar paid-off house worth $500-900K (they pay contractors for maint/upkeep they cannot do themselves) to go into 1/3 sized condo at slightly less purchase price with taxes and maint.fee of 1000-2000/mth

Go looking for a prime home in a prime neighbourhood - demand is not problem (5-15 offers on everything) ...the problem is supply!