Toronto Housing Market Cooling Down

Greater Toronto REALTORS® reported 3,679 sales through the first 14 days of July 2012, representing a 5.6 per cent increase compared to the 3,484 sales reported for the same period in 2011.  New listings were up by 14.4 per cent over the same time frame. full article

Sales growth occurred in the regions surrounding the City of Toronto. In the City of Toronto, sales were down 4%, led by a 10% drop in Condo sales.

Price growth was more moderate in the first half of July – up by 2.3% compared to last year. Toronto continued to have the strongest price increase, rising 3.5% to $496,645. The rest of the GTA (905 area) had an increase of 1.9% in average selling price.

Housing demand has softened from the frenzy spring market but remained strong. On average, homes sold for 98 per cent of the asking price in 25 days, compared to 99.7 per cent in 21 days in April. On a year-to-date basis, homes have been selling faster in each and every month this year than in 2011.

GTA Housing Market Indicator - Average Days On Market, July 2012

Improved supply should benefit home buyers in the second half of this year. Better supplies have moved the low rise home market towards a more balanced territory, while the condo market has entered into a Buyer’s market for the first time in more than two years.

GTA Condo Market Indicator - Sales to New Listings Ratio, July 2012

GTA Housing Market Indicator - Low Rise Home Sales to New Listings Ratio, July 2012

A better supplied market should also help price growth to slow down to a more sustainable level in the months ahead.

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Antonia Yan

Antonia Yan

Sales Representative
CENTURY 21 Leading Edge Realty Inc., Brokerage*
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