Real Estate Coaching: Sign up here for FREE Real Estate Coaching…whether you are buying , selling or renting.
Starbuck’s Coffee: Please join my new Real Estate Fan Page here. When I reach 100 FANS I will be giving away a bunch of Starbuck’s coffee cards.
Email Alerts: Subscribe to receive real estate news first. Be first in line for new construction Platinum Pricing. Click here.
Low-Rise Home Sales Drive August Growth
Greater Toronto Realtors reported 6,418 sales through the MLS in August 2012. The number of transactions represented a 12.4% decrease compared to August 2011. The decline was most pronounced in the condominium apartment segment in the City of Toronto where sales declined by 22.0%.
The number of new listings reported in August was down by 5.5% compared to the same period in 2011.
“Residential transactions were down in August compared to last year,” said Toronto Real Estate Board President Ann Hannah. “ Stricter mortgage lending guidelines, which came into effect in July, arguably played a role. 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 continued to grow in August up by 6.4% from the same time last year to $479,095. Price growth continued to be driven by the low-rise market segment in the City of Toronto, including single-detached homes with an annual price increase of 15%.
“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 the Toronto Real Estate Board’s Senior Manager of Marker Analysis Jason Mercer. ”
“ The trends for sales and new listings are moving somewhat in synch, suggesting that the relationship between sales and listings will continue to promote growth 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 22.0% from August 2011. The average price of a Toronto condo decreased by 4.0% from the same time last year.
Condominium apartments accounted for 23.6% of total sales in the GTA for August 2012 while detached homes accounted for 47.2% of the total sales.
Other notable statistics include the average days on the market for August at 28 days. Active listings were 19,043 in August-up 10.5% from August 2011. The sales-to-listings ratio for August was 33.7% which is classified as a 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.
Please contact me direct at 416-520-6746 or by email, David@TorontoRealEstate.ca