May volume down but prices up
Homes linger a little longer as average days on the market rises from 28 to 35
From the Globe and Mail
The first half of May has prolonged a trend toward lower real estate sales, according to the Toronto Real Estate Board, but prices continue to rise.
The Toronto Real Estate Board reported that 4,422 homes changed hands in the Greater Toronto Area in the first two weeks of this month, a 12% decline compared to the 5,003 homes sold during the first half of May 2007. Prices however, rose to an average $400,817, up 6% from the $377,612 reported a year ago.
Houses are also staying on the market longer, taking an average 35 days before finding a buyer, compared to 28 days a year ago.
The sales drop off was pronounced in the city of Toronto, where there were 1,734 sales — representing a 15% decline from the 2,053 homes sold during the first half of May 2007 and an 11% decline from the 1,941 homes sold during the same period in 2006. The average house price in the city is now $437,205, up 6% from $412,701 a year ago.
In the 905 Region, there were 2,688 sales, down 9% from 2,950 a year ago but up 4% from the same period in 2006. At $377,688, the average price is up 7% from the $353,192 recorded during the same time frame in May of 2007.
Despite the overall decline, some neighbourhoods showed healthy increases.
In the Annex, transactions rose 39% compared to the same period a year ago, driven by strong detached home and condo sales. The Danforth saw sales increase 29% overall and interest in detached homes also led Streetsville to a 5% overall sales increase.
Richmond Hill South saw strong sales in most property types resulting in a 3% increase compared to a year ago.
“In recent years, home buyers have faced a major challenge with respect to limited selection,” said Toronto Real Estate Board President Maureen O’Neill. “Now though, inventory is up 11% compared to a year ago, which has resulted in more choice for home buyers.”
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