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Greater Toronto Realtors reported 5,793 sales through the MLS in November 2012. The number of transactions represented a 16.1% decrease compared to November 2011
The number of new listings reported in November was up by 1.3% compared to the same period in 2011.
“Transactions have been down on a year-over-year basis since June, after being up substantially in the last half of 2011 and the first half of 2012. Some buyers pulled forward their decision to purchase, which has impacted sales levels in the second half of 2012” said Toronto Real Estate Board President Ann Hannah. “
“ Stricter mortgage lending guidelines, including a reduced maximum amortization period and a purchase price ceiling of one-million dollars for government insured mortgages have prompted some buyers to move to the sidelines. This situation has been exacerbated in the City of Toronto because the additional upfront land transfer tax takes money away from buyers that otherwise could be used for a larger down payment,” continued Hannah.
The average selling price continued to grow in November up by 1.6% from the same time last year to $485,328. Price growth continued to be driven by the low-rise market segment in the City of Toronto, including semi-detached homes with an annual price increase of 4.0% and townhouses with an annual price increase of 5.0%.
“The moderate annual rate of price growth compared to previous months was largely due to a different mix in detached home sales this year compared to last, particularly in the City of Toronto. The share of detached homes that sold for over $1m was down substantially, which influenced the overall average price” said the Toronto Real Estate Board’s Senior Manager of Marker Analysis Jason Mercer. ”
“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 25.0% from November 2011. The average price of a Toronto condo decreased by 4.0% from the same time last year.
Condominium apartments accounted for 23.8% of total sales in the GTA for November 2012 while detached homes accounted for 46.9% of the total sales.
Other notable statistics include the average days on the market for November at 30 days. Active listings were 18,311 in November-up 17.8% from November 2011. The sales-to-listings ratio for November was 31.6% which is classified as a sellers 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