November 19, 2012 -- Greater Toronto Area REALTORS® reported
2,687 transactions through the TorontoMLS system during the first two
weeks of November. This result represented a 17.5 per cent 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 per cent 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 four per cent 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.
