Transactions Take A Dip

In Toronto 2,308 transactions happened last month compared to 2,952 sales a year ago – a reduction of virtually 28 percent. Meanwhile 3,485 homes changed hands in the 905 Regions, a decrease of more than Thirteen per cent from 3,956 sales in Nov 2011.
A significant factor which has influenced the dip in sales experienced in recent months relates to the changes in mortgage lending guidelines that came into effect in July. The changes reduced the maximum amortization period from Thirty years to 25 years and set a purchase price ceiling for administration backed insured mortgages at 1,000,000 dollars. Adding to this situation in the Town of Toronto is the additional upfront Land Transfer Tax, which takes money from home buyers that could otherwise be used to offset the high costs of home possession. These laws have ended in some homes putting their call to purchase on hold while they save up additional money for a down-payment and / or experience an increase in their earnings.
While sales reduced year-over-year in November, a modest overall price increase was reported, with the medium price of a GTA home reaching $485,328. This represented an increase of 1.6 per cent compared to a year back.
The 905 Region, with a median price of $463,779, showed a price increase of four % compared against a half-percent fall in the City of Toronto average home price, which was $517,866.
The pace of typical price expansion in Nov was slower than what was experienced for a lot of 2012, especially in the low-rise segment of the market. This was largely because of the fact that the mixture of single detached homes sold in the City of Toronto this past November modified relative to last year. Specifically, the share of homes that sold for over one million dollars was down considerably.
While the mix of home types sold might have modified, market conditions stayed tight for low-rise home types. The MLS HPI tracks the price change for baseline houses to explain : a home with the same features over time. This is evident when we consider the MLS Home Price Index ( HPI ) for the GTA.
Stories on the work front was positive in November, as the Toronto seasonally changed rate of unemployment reduced to 8.2 per cent, from 8.6 % the month before. When we have a look at price thru this lens, we find the baseline price for major home types was up by 4.6 % in the GTA as a whole and 3.9 % for the City of Toronto. Rates remain mostly unchanged, with a five year fixed mortgage rate of just over three % continuing to be available.
At this time of the year I’m often asked whether or not it is shrewd to list one’s home for sale over the holidays, and there are actually many benefits to doing this. Consider that those viewing homes at this time of the year are more likely to be heavy consumers. Too, houses often look their very best when they’re decorated for the holidays, and an expedient emotive reaction to a property frequently prompts an offer.
Call me to talk about the many other factors you must consider before selecting to make your next move.