Good News For Home Owners and Buyers!

Sales Dip in November while Selling Prices Increase

Greater Toronto Area REALTORS® reported 5,793 sales in November 2012 – down by 16 per cent compared to November 2011.

Transactions have been down on a year-over-year basis since June, after being up substantially in the last half of 2011 and the first half of 2012. Some buyers pulled forward their decision to purchase, which has impacted sales levels in the second half of 2012.

I've heard buyers say they will wait for property prices to fall. Mistake! You can see from this report that although the average price only rose by 1.6% anually, in fact property values for what the average buyer seeked this year, rose on average by 6%. I don't see this trend stopping. I believe in the Town of Georgina we can expect the average increase in house prices in 2013 to out pace the average increase of the Toronto Real Estate Boards benchmark price index. The reason is affordable average sale prices to begin with and a safe quick commute to the work place. There has never been a better time to buy a home. Speak to a Realtor who can actually interpret the statistics.

Stricter mortgage lending guidelines, including a reduced maximum amortization period and a purchase price ceiling of one-million dollars for government insured mortgages, have prompted some buyers to move to the sidelines. This situation has been exacerbated in the City of Toronto because the additional upfront Land Transfer Tax takes money away from buyers that otherwise could be used for a larger down payment.

The average selling price was up by 1.6 per cent annually to $485,328.

The moderate annual rate of price growth compared to previous months was largely due to a different mix in detached home sales this year compared to last, particularly in the City of Toronto. The share of detached homes that sold for over one-million dollars was down substantially, which influenced the overall average price.

The MLS detached benchmark price, which tracks the price for a home with the same attributes over time, was up by almost six per cent in Toronto, suggesting that market conditions for low-rise homes remain quite tight despite a changing mix of sales.

Seasons Greeting!

Jeff