Houses in Toronto by Steve Harris
According to a newly released report by Greater Toronto Area (GTA) REALTORS®, the overall number of sales recorded by the TorontoMLS system in August 2012 declined by almost 12.5 per cent in a year-to-year analysis. Similarly, the number of new listings went down by 5.5 per cent compared to August 2011. Since both new listings and sales went down, market conditions continue to remain tight, with strong competition between buyers.
“Residential transactions were down in August compared to last year. 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,”noted Toronto Real Estate Board (TREB) President Ann Hannah.
However, unlike the number of sales, average selling prices continued to go up and rose almost 6.5 per cent to $479,095. The year-to-year growth was largely caused by a price increase in the low-rise home segment in the City of Toronto.