The Toronto Real Estate Board reported 6,418 sales in the month of August, a decline of almost 12% compared to August 2011. The number of new listings was also down 5.5%. The average selling price was $479,095, up by 6.5% compared to last year.
"Stricter mortgage lending guidlines, which came into effect in July, arguably played a role. In the City of Toronto, the additional impact of relatively higher home prices coupled with upfront costs associated with the City's Land Transfer tax led to a stronger annual decline compared to the rest of the GTA," said TREB's President Ann Hannah.
"While sales were down so too were listings. As a result market conditions remained quite tight with substantial competition between buyers in the low rise segment," said Jason Mercer, TREB's Senior Manager of Market Analysis. "The trends for sales and new listings are moving somewhat in sync, suggesting that the relationship between sales and listings will continue to promote price growth moving forward."