Saturday, December 20, 2008

Buyers Are Walking Away in Toronto


While the Toronto Real Estate Board provides an abundance of statistics, which they make available on their public website (www.torontorealestateboard.com), there are some numbers they don't publish for some reason.


So, with the help of my favourite broker to get the counts from the MLS system, I intend to track some of the numbers which in my view give important perspectives of the real estate market in Toronto.


In this entry I'll start with the "Deals Fallen Through" number. I hope to add others and possibly for other markets over time, if I can get the help to accurately produce them.


The "Deals Fallen Through" number indicates the number of buyers who have entered into an agreement of purchase and sale, but have for one reason or another decided to back out of the transaction, causing the deal to "fall through".


The first graph below shows the trend in the number of deals that have fallen through between November 2007 and November 2008. The second graph shows the number of deals that have fallen through as a percentage of sales. For December 2008, as of December 15, the number of deals that have fallen through is 69 and the same number as a percentage of sales 4.44%.




7 comments:

  1. First!!!

    Great blog, I look forward to following it!
    Whybuywhenucanrent'til'13?

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  2. Thanks - I appreciate the words of support!
    Cheers...

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  3. Jet - please keep your blog going. 2 excellent posts so far.
    Burke

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  4. Great observations, thank you.

    Do these "Deals Fallen Through" represent number of deals cancelled within 15 days after signing sales agreement or beyond? It would be actually interesting (although not sure if possible) to see number of deals fallen through past 14-15 days period during which a buyer may back out without any consequences.

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  5. These are deals that have fallen through where a legal binding agreement is in place, where buyers (and sellers) can no longer walk away without consequences. I should mention that these are all resale properties on the MLS and not newly constructed properties. I think you might be thinking newly constructed properties. For resales, once the conditions have been removed or if there are no conditions, the agreement is firm and the parties can no longer walk away without consequences.

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  6. It would be useful to know if you were tracking conditional deals that aren't firming up or firm deals that didn't close. A "deal falling through" in my mind, is a firm sale that doesn't close.

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