TORONTO, December 5, 2012 — Greater Toronto Area REALTORS reported 5,793 sales in November 2012 down by Sixteen % matched against Nov 2011.
“Transactions have been down on a year-over-year basis since June, after being up significantly in the last half 2011 and the first part of 2012. Some consumers pulled forward their decision to purchase, that has impacted sales levels in the second half of 2012,” said Toronto Real estate Board ( TREB ) President Ann Hannah. This situation has been increased in the Town of Toronto as the further up front Land Transfer Tax takes cash away from buyers that otherwise could be utilised for a larger down payment,” continued Ms.
“Stricter mortgage lending guidelines, including a reduced maximum amortization time period and a purchase price ceiling of one-million dollars for government insured mortgages, have prompted some buyers to move to the sidelines. Hannah.
The average selling price was up by 1.6 % annually to $485,328. The MLS Home Price Index ( MLS HPI ) Composite Benchmark was up by 4.6 percent matched against last year.
“The moderate annual rate of price expansion compared against previous months was mostly due to a different mix in detached home sales this year compared against last, especially in the City of Toronto. The proportion of detached homes that sold for over one-million dollars was down significantly, which influenced the overall average price,” enunciated Jason Mercer, TREB’s Senior Manager of Market Analysis.
“The MLS HPI detached benchmark price, which tracks the price for a home with the same features over the course of time was up by almost six per cent in Toronto, counseling that market conditions for low-rise houses remain quite tight notwithstanding a changing mix of sales,” added Mercer.