Resale Home Activity Continues At A Solid Pace
August 17, 2012 — Resale housing activity in the Greater Toronto Area continued at a moderate pace in July, with 7,570 homes changing hands. This represents a 1.5 per cent decrease from the 7,683 sales that took place in July 2011.
In Toronto 2,721 transactions took place last month compared to 2,995 sales a year ago, a drop of nine per cent, which research suggests can be attributed to the cost of the City of Toronto’s land transfer tax.
Meanwhile sales in the 905 Region improved compared to a year ago. Last month 4,849 homes changed hands in the 905 Region, a three per cent climb from the 4,688 sales that took place in that area in July 2011.
Despite more moderate sales in the City of Toronto, the pace of activity remained on track throughout the GTA as compared to a year ago, which was reflected in the amount of time homes were available for sale. The average number of days on market was 26 last month, consistent with last July.
Prices showed continued strength last month, with the average cost of a GTA home increasing four per cent compared to a year ago, to $476,947. The City of Toronto, with an average price of $500,934 showed a slightly stronger year-over-year increase of five per cent compared to 3.5 per cent in the 905 Region, where the average price was $463,488.
Price gains were strongest for detached homes in the City of Toronto in July, at eight per cent. Semi-detached and town homes in Toronto followed with gains of five and three per cent respectively. In the 905 Region appreciation by housing type was more balanced with detached, semi-detached and town homes all showing five per cent price increases. Throughout the GTA condo prices stayed the course compared to a year ago, declining one per cent in Toronto and increasing by one per cent in the 905 Region.
At 13,888 the number of new listings was nearly 12 per cent greater than July 2011. The improved supply of available homes in recent months has eased upward pressure on prices as anticipated.
News on the employment front was neutral in July, as the Toronto unemployment rate remained largely unchanged from the previous month, improving 0.1 of a percentage point to 8.5 per cent.
While interest rates have also remained stable, with five year fixed mortgage rates of approximately three per cent, we may see an interest rate hike within the next year.
Bank of Canada Governor Mark Carney commented recently that since Canada’s economy has almost returned to full capacity, it may soon be time to withdraw some monetary policy stimulus.
Since a number of variables such as these should factor into the timing of your next move, it’s wise to get informed, objective from advice from a Greater Toronto REALTOR® when weighing your options.