Greater Toronto Area REALTORS® reported 6,418 sales in August 2012, representing a year-over-decline of almost 12.5 % compared August 2011. One might say that decline is do to stricter mortgage lending guidelines, which came into effect in July but the number of new listings reported in August was down also by 5.5% compared to the same period in 2011.
In the City of Toronto, the additional impact of relatively higher home prices coupled with the upfront cost associated with the City’s Land Transfer Tax led to a stronger annual decline in sales compared to the rest of the GTA.
The average selling price for August 2012 transactions was $479,095 – up by almost 6.5% compared to August 2011. The annual rate of price growth was driven by the low-rise home segment in the City of Toronto, including single-detached homes with an average annual price increase of 15%. Condo prices in 416 area continue to decrease (down 4% to $349 489)
“While sales were down year-over-year in the GTA, so too were new listings. As a result, market conditions remained quite tight with substantial competition between buyers in the low-rise market segment,” said Jason Mercer, TREB’s Senior Manager of Market Analysis. “The trends for sales and new listings are moving somewhat in synch, suggesting that the relationship between sales and listings will continue to promote price growth moving forward.”
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