August Continues Summer Slowdown
Toronto Real Estate Agents Report Mid-Month Resale Housing Market Figures
Greater Toronto Area Realtors reported 2,857 transactions through the Toronto MLS system during the first 14 days of August 2012. This mid-month result represented a dip of 7.6% in comparison to 3,091 sales reported during the same period in 2011.
Comment: Another dip in sales volume – could it be a return to normal patterns, summer holidays, land transfer tax, or something else? No way to know right now, let’s see what happens through the fall market.
“A number of factors played into the dip in sales in the first half of August. Sales growth in the spring was very strong, suggesting that some buyers sped up their decision to buy. Stricter mortgage lending guidelines that came into effect at the beginning of July likely prompted some households to put their buying decision on hold. Finally, relatively higher home prices and the additional upfront cost of the City’s Land Transfer Tax go a long way to explain the more pronounced dip in sales in the ’416′ area code,” said Toronto Real Estate Board (TREB) President Ann Hannah.
Comment: What is interesting is that sales went from being down 12% in July to down 7% in August – rising 5% in a way. Also, new listings were up 12% in July but are down 12% in August – a full 24% reversal. Interesting…
The average selling price for the first two weeks of August in the Greater Toronto Area was $480,180 – up 9.2% in comparison to 2011.
Comment: So we have rising sales and decling listings – and rising prices. Might be back to the same old if we are not careful. Again, though, summer tends to find people on vacation and thinking less about real estate.
“The strong annual rate of price growth so far in August was driven by the single-detached market segment, particularly in the City of Toronto. While this segment of the market has been consistently tight over the past year, the strong double-digit price growth for single-detached houses in the City suggests that the mix of houses sold this year compared to last also changed, with higher end homes accounting for a greater share of sales this year,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.
Summary of Toronto MLS Sales and Average Price August 1 – 14
City of Toronto (416: sales –13.5% | price +14.1% | listings –12.3%)
2012 Sales: 1,010 | Avg Price: $502,092 | New Listings: 1,974
2011 Sales: 1,167 | Avg Price: $440,036 | New Listings: 2,252
Rest of GTA (905: sales –4.0% | price +6.6% | listings –1.5%)
2012 Sales: 1,847 | Avg Price: $468,198 | New Listings: 3,497
2011 Sales: 1,924 | Avg Price: $439,300 | New Listings: 3,552
GTA (sales –7.6% | price +9.2% | listings –5.7%)
2012 Sales: 2,857 | Avg Price: $480,180 | New Listings: 5,471
2011 Sales: 3,091 | Avg Price: $439,578 | New Listings: 5,804
Comment: Anyone suggesting a buyers’ market is forgetting that rising prices are the domain of sellers. If sales and prices drop while listings rise, that is a buyers’ market. But when sales and listing drop while prices rise… sellers are still in control.
Contact the Jeffrey Team for more information – 416−388−1960
Laurin & Natalie Jeffrey are Toronto Realtors with Century 21 Regal Realty.
They did not write these articles, they just reproduce them here for people
who are interested in Toronto real estate. They do not work for any builders.
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