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Toronto Real Estate Board reports:

GTA resale housing market down but still healthy

The Greater Toronto Area resale housing market saw 3,955 homes change hands in the first half of April, down five per cent from the same time period last year, Toronto Real Estate Board President Maureen O’Neill announced today. “The first half of April brought sales activity within five per cent of mid-April 2007,” said Ms. O’Neill.

In the City of Toronto sales are down 11 per cent compared to a year ago, with 1,514 transactions taking place. Inthe 905 suburbs, sales are down just over one per cent to 2,441 for mid-month April 2008 from 2,477 sales midmonth April 2007.

Throughout the GTA prices have risen seven per cent compared to the same timeframe last year, to an average of $399,117. In the City of Toronto the average stands at $454,211 up 10 per cent over mid-April 2007. The 905 Region has seen a six per cent increase compared to a year ago, with a current average price of $364,939.

The number of listings on the market is one per cent greater than last year with current inventory sitting at 22,985.

This indicates that inventory is on the rise. The positive news is homeowners are selling their homes with an average of 28 Days on Market compared to 30 a year ago. The slight increase in inventory levels and house prices are encouraging factors.

A number of GTA neighbourhoods showed strong sales activity during the first half of this month.

Willowdale (C07) saw a 75 per cent overall increase in transactions, driven by strong, detached, condo-apartment, and condo-townhouse sales.

In Vaughan/Thornhill (N02), transactions increased by 53 per cent compared to mid-April 2007, as a result of strong detached home sales.

Strong detached home sales also drove Brampton East (W24) to 37 per cent compared to the same timeframe a year ago.

In Riverdale (E01) transactions are up 10 per cent, also as a result of strong detached home sales.

“We’re also seeing sellers achieve on average 99 per cent of their asking price, which is one per cent higher than a year ago,” said Ms. O’Neill. “April’s numbers point to a stable, healthy market for the Greater Toronto Area this spring. However TREB still remains wary of the Land Transfer Tax in Toronto.”

April 17, 2008 in Toronto Real Estate Board | Permalink

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Comments

brampton real estate
One of the greatest and most obvious reasons to consider buying a home is the interest rates. Interest rates today, are some of the lowest rates that we have seen in years. It is possible that they will go even lower. You may think that getting a home loan in order to take advantage of these rates is impossible. Although credit standards and loan approval may be higher than before, obtaining a loan is well within the reach of homebuyers with a good credit rating and a steady income that can support the monthly mortgage payments.

Posted by: torontohomeandhouse123 | Jun 11, 2010 5:05:34 AM

I am trying to find a real estate agent by the name of "John Cook" or Cooke. Used to know him via the North Toronto Ski Club ... He is/was also a ski instructor, married Christine Wilcox, they have a daughter.

Posted by: Theri | May 27, 2008 2:33:59 PM

Hey Mike,

What we're seeing is the end of a boom cycle, or 'hot market'. Sellers expect (with the help of RE agents) a certain appreciation and price their homes accordingly. The prices have gotten too high for many buyers, so demand drops accordingly. The price trend continues with fewer buyers for a period of time, but the result is increasing supply and a longer wait for many sellers. That's where we are now.

It's the wait time for many sellers that will change things. Eventually some sellers will drop their prices, and these properties will sell. It will put pressure on other sellers to lower their prices. The downward pressure will continue until prices become affordable. At that point enough buyers will come into the market to even up the supply/demand imbalance.

What's confusing you is the momentum of pricing expectations. What you expect to happen will, but it's anybody's guess how long it will take. Many sellers are very slow to drop prices, and it takes a critical mass to change the trend. The folks who bought early this year will not be happy.

Posted by: Al | Apr 18, 2008 12:49:41 PM

It's no surprise to hear that sales in the GTA are down again, this time again over the same time last year. However, prices continue to rise. Are sales slowing down because Toronto is set for its own housing collapse? I believe that the US housing crash has also had a spillover effect on consumer confidence. As US consumers lose confidence in the "borrowing power" of their home and other real estate assets, they will restrict spending.

Posted by: Toronto real estate agent | Apr 18, 2008 4:16:00 AM

Unbelievable!,Today Toronto Real Estate Board report that resale is down 5% for period to mid-April, in March down 22%,February down 11% and January down 2%,but Average Price increased about 10%. To when will be sellers market in Toronto Area,economy is in recesion in Ontario but they still increased Homes,property taxes,insurances,fuel etc.
Something is wrong or I am stupid?

Posted by: Mike | Apr 18, 2008 12:09:17 AM

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