Blog by Carol Lome, Broker

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GTA Resale Housing Market Continued at a Measured Pace

Here is some information about the Toronto Market from Canada Realty News. 

With 6,424 homes changing hands last month, activity in the Greater Toronto Area (GTA) declined 6% compared to the 6,866 sales that took place in September 2007 and declined 3% compared to the 6,622 transactions that were recorded two years ago.

In the City of Toronto sales were less robust. The 2,546 transactions recorded last month declined 11% from the 2,854 sales in September 2007 and declined 5% from the 2,680 sales recorded in September 2006. Sales increased 6% between September 2006 and September 2007.

“We remain concerned about the Land Transfer Tax in the City of Toronto,” said Ms. O’Neill.

In the 905 Region, the 3,878 sales recorded last month were within 3% of September 2007’s 4,012 transactions, and within 2% of September 2006’s 3,942 sales. Sales in this region increased 2% between September 2006 and September 2007.
From a year-to-date perspective, the GTA resale housing market has declined 14%. In the City of Toronto year-to-date sales have declined 16% from last year. And the 905 Region year-to-date sales have declined 12%.

However, prices throughout the GTA however have remained fairly stable. At $368,549, the average price of a GTA home in September has declined 3% from $380,132 recorded a year ago.

“Although the market is not as robust as it was a year ago, homeowners are continuing to see strong returns on their investment,” said Ms. O’Neill. “On average, Sellers are achieving 97% of their asking price.

With the average number of days on market increasing to 36 days from to 31 days a year ago, it is taking slightly longer for homeowners to achieve a sale.

As with the last few months, we continue to see a handful of neighbourhoods reporting increases compared to a year ago, Scarborough East transactions increased 22% compared to September 2007 based on strong sales of all housing types. Streetsville saw an 11% sales increase due primarily to strong detached home sales. And Newmarket recorded 11% increase in sales compared to a year ago, driven mainly by strong condominium townhouse sales.

“Given that these are trying times for the world economy, in context, the Greater Toronto Area resale housing market continues to fare quite well,” said Ms. O’Neill. “From a long-term perspective, buying a home remains a sound financial decision.”