The Toronto Real Estate Board reported 2,687 transactions through the TorontoMLS system during the first two weeks of November. This result represented a 17.5% decline compared to the same period in 2011.
“The reduction of the maximum amortization period to 25 years translated into higher mortgage payments. Some households will have to save more money for a down payment before purchasing a home, in order to offset these higher mortgage costs. This is more difficult in the City of Toronto, where households must pay an additional land transfer tax up front. The abolishment of this tax would allow buyers to have a larger down payment,” said Toronto Real Estate Board (TREB) President Ann Hannah.
The average selling price during the first 14 days of November was $488,647 – up by 1.7% in comparison to the first 14 days of November 2011. The median selling price over the same period was up by a greater rate of 4% to $416,000. The stronger rate of growth for the median selling price suggests that fewer high-end homes sold this year compared to last.
“During the first half of November, there were fewer luxury detached homes sold as a percentage of total transactions compared to last year. The year-over-year change in the mix of detached homes sold in the GTA, rather than a change in market conditions, was responsible for a lower than normal increase in the average detached home price,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.
“Toronto’s Condo Authority”