Toronto Real Estate housing sales slump 17 per cent but prices climb

March has seen 7765 transactions on the Toronto MLS system, which is down 17 per cent from March 2012 (9385 transactions), however this could be in part due to the Good Friday holiday, which typically results in fewer sales.

Sales in the first quarter of 2013 have also seen a slump (down 14 per cent from Q1 2012), in the amount of 17678 sales.

"Home ownership remains affordable for a household earning the average income in the Greater Toronto Area. There are many willing buyers in the marketplace today. While some households have put their decision to purchase on hold as a result of stricter lending guidelines or the additional Land Transfer Tax in the City of Toronto, other households simply haven’t been able to find the right house due to a shortage of listings in some market segments," said Toronto Real Estate Board President Ann Hannah.

The average selling price in March was $519,879 (an increase of 3.8% from March 2012). The average price in 1st quarter 2013 has also gone up by 3.2 per cent to $508,066.

Condo sales (resale not new construction) have slumped by 18.4 per cent however the average price is up 2 per cent from March 2012. Toronto condos are selling for an average of $367,595 in March 2013.

Detached homes in Toronto sold have also seen a drop by 21.6 per cent.

Townhouse sales are down 15 per cent, but on the other hand have seen large gains in sale prices: up 5 per cent from the previous year, with an average sale price of $450,104.

Once again, TREB is citing last July’s tightening of mortgage lending rules and the City of Toronto’s double land transfer tax as factors in the slowdown in sales, which is happening in cities right across the country.

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