Sales Volume Down While Prices Still Rise
Toronto Realtors release monthly resale market figures
Greater Toronto Realtors reported 9,422 home sales through the Toronto MLS system in June 2012. The number of transactions was down by 5.4% in comparison to June 2011. The year-over-year decline was largest in the City of Toronto, where sales were down by 13% compared to June 2011. Sales in the rest of the Toronto Real Estate Board (TREB) market area were comparable to a year ago.
Comment: As much as I am surprised by sales volume going down, it really is just a return to normality. Years back, the usual cycle had the summer being pretty dead for real estate. Then things exploded and the market stayed constant through the year. Maybe we just getting back to a more normal state of affairs.
“Buyers continue to face the substantial upfront cost associated with the unfair Toronto Land Transfer Tax,” said TREB President Ann Hannah. “Recent polling by TREB suggests that many households are considering home purchases outside of the City of Toronto to avoid paying the Land Transfer Tax. This goes a long way in explaining the disproportionate decline in sales in the City versus surrounding regions.”
The average selling price in June was $508,622 – up by 7.3% compared to June 2011. The mortgage payment associated with the average priced home in June, assuming 5% down and a five-year fixed rate mortgage amortized over 25 years, would account for approximately 35% of the average household’s income in the GTA after adding property tax and utility payments.
“According to new mortgage lending guidelines set out by Finance Minister Jim Flaherty, the GTA housing market remains affordable. The share of the average household’s income going toward major home ownership payments for the average priced home remains below the 39% ceiling recently announced by Mr. Flaherty,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.
“The average household in the GTA continues to benefit from a considerable amount of flexibility to account for higher interest rates moving forward,” continued Mercer.
City of Toronto (“416″)
2012 Sales: 3,520 | Avg Price: $554,077 | New Listings: 6,742
2011 Sales: 4,053 | Avg Price: $511,591 | New Listings: 6,102
Rest of GTA (“905″)
2012 Sales: 5,902 | Avg Price: $481,512 | New Listings: 9,937
2011 Sales: 5,906 | Avg Price: $448,579 | New Listings: 8,653
2012 Sales: 9,422 | Avg Price: $508,622 | New Listings: 16,679
2011 Sales: 9,959 | Avg Price: $474,223 | New Listings: 14,755
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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