Blog by Carol Lome, Broker

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GTA resale housing market continues to reflect economic times

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

The erosion of consumer confidence that began with rising fuel prices earlier this year is continuing as the global financial crisis and volatile equity markets have many Canadian households concerned about their own finances. This is clearly reflected in the slowdown of the housing market.

The Greater Toronto Area resale housing market reported 5,155 sales in October, Toronto Real Estate Board President Maureen O'Neill announced today. This represents a 35% decline from the 7,915 sales reported in October 2007 and a 25% decrease from the 6,876 transactions that took place during the same period two years ago.

In the City of Toronto, there were 2,136 sales, with sales activity down 38% from the 3,455 transactions recorded last October. In the 905 Region 3,019 sales were recorded, with sales activity down 32% from a year ago when 4,460 homes changed hands.

With 68,570 transactions to date this year, sales are within 16% of the 81,563 transactions noted a year ago. The 2007 market referred to was a record breaking year with each month breaking records for the entire year. Putting this into perspective, 2008 figures are indicative of a return to a more balanced market.

In the City of Toronto, the current average price of a home was $376,896, down 13% from last October's average of $434,022 and within 3% of the October 2006 average of $386,807.

In the 905 Region homes are selling for an average price of $336,049, a decline of 8% from October 2007's average of $364,142. Prices in this area however, remain one per cent higher than the October 2006 average of $332,822.