Greater Toronto Area (GTA) REALTORS® reported 5,879 transactions through the TorontoMLS system in September 2012, down 21 per cent compared to September 2011. The average selling price was $503,662, representing an increase of more than 8.5 per cent compared to last September. full report
Sales were down in September for all major property types in all regions except condo apartments in Durham. Condominium apartments had the largest decline in sales.
Contrary to the sales trend, average home prices had strong growth in September for all major property types, including condominium apartments. However, on a quarterly basis, only low-rise homes had a healthy 6% price increase in the third quarter compared to the same period in 2011. Condo prices had been flat in the third quarter compared to last year due to the lower prices experienced earlier in July and August.
While there is no question that the housing market in GTA is cooling, supply of new listings is also diminishing in parallel. From July to September, total new listings were down 0.9% compared to the third quarter in 2011. In particular, new listings of detached, semi-detached, and townhomes in Toronto were down 7%, 16%, and 8%, respectively. New listings of low-rise homes were also down 2% in the 905 areas compared to the third quarter last year.
As a result, the overall GTA housing market remains in the “balanced market” territory despite the declines in sales in recent months. "The months of inventory remains low from a historical perspective, which explains the strong price increases we are experiencing," said Toronto Real Estate Board (TREB) President Ann Hannah.
"Barring a major change to the consensus economic outlook, home price growth is expected to continue through 2013. Based on inventory levels, price growth will be strongest for low-rise home types, including single-detached and semi-detached houses and town homes," said TREB’s Senior Manager of Market Analysis, Jason Mercer.
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