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Greater Toronto Realtors reported 9,422 sales through the MLS in June 2012. The number of transactions represented a 5.4% decrease compared to June 2011. The year-over-year decline was largest in the City of Toronto, where sales were down by 13.0% compared to June 2011. Sales in the rest of theToronto Real Estate Board area were comparable to a year ago.
New listings, at 16,679, were up by a 13.0% compared to June 2011.
“Buyers continue to face the substantial upfront cost associated with the City of Toronto’s unfair land transfer tax,” said Toronto Real Estate Board President Richard Silver. “ Recent polling by TREB suggests that many households are considering home purchases outside 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.”
With market conditions remaining tight in the GTA, the average selling price continued to grow in June up by 7.3% from the same time last year to $508,622. Price growth continued to be driven by the low-rise market segment.
The mortgage payment associated with the average priced home in June, assuming five percent 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 remains below the 39% ceiling recently announced by Mr. Flaherty,” said the Toronto Real Estate Board’s Senior Manager of Marker Analysis Jason Mercer. ”
“ The average household in the GTA continues to benefit from a considerable amount of flexibility to account for higher interest rates moving forward.”
“TREB’s baseline forecast for 2012 is for an average price of $485,000, representing a more moderate 4.0% annual rate of price growth. This baseline view is subject to a heightened degree of risk given the uncertain global economic outlook,” continued Mercer.
Sales of Toronto (416 area code) condominium apartments decreased by 18.0% from June 2011. The average price of a Toronto condo increased by 2.0% from the same time last year.
Condominium apartments accounted for 21.2% of total sales in the GTA for June 2012 while detached homes accounted for 49.8% of the total sales.
Other notable statistics include the average days on the market for June at 22 days. Active listings were 20,583 in June -up 13.7% from June 2011. The sales-to-listings ratio for June was 45.8% which is classified as a STRONG seller’s market. A ratio from 24%-28% is considered a balanced market.
Sellers are looking for market value for their property. I prepare a comparative market analysis (CMA) for all of my Buyer clients prior to submitting an offer to determine the property’s market value range.
Real estate is very neighbourhood specific and even very street specific in some areas. The numbers as reported above are GTA averages. Results in one neighbourhood or on one street do not indicate that all other neighbourhoods or streets are experiencing the same results. We are still seeing multiple offers in some areas for the best homes.