December Twenty-one, 2012 -- A respectable number of resale home transactions happened across the Bigger Toronto Area in Nov, with 5,793 houses changing hands. This represented a Sixteen % decline from 6,908 sales in Nov 2011. Meanwhile 3,485 houses modified hands in the 905 Regions, a decrease of more than Thirteen percent from 3,956 sales in November 2011.
A significant factor that has influenced the dip in sales experienced recently relates to the changes in mortgage lending guidelines that came into effect in July. The changes reduced the maximum amortizing duration from Thirty years to 25 years and set a purchase price ceiling for administration backed insured mortgages at 1,000,000 dollars. These laws have resulted in some households putting their call to get on hold while they save up additional cash for a down payment and / or experience a rise in their revenue.
While sales decreased year-over-year in Nov, a modest overall price increase was reported, with the median price of a GTA home reaching $485,328. Adding to this situation in the City of Toronto is the extra up front Land Transfer Tax, which takes money from home buyers that might otherwise be used to counterbalance the extreme costs of home ownership. This represented an increase of 1.6 % compared against a year ago.
The 905 Region, with an average cost of $463,779, showed a price increase of 4 per cent compared with a half-percent decrease in the City of Toronto average home price, which was $517,866.
The pace of typical price growth in Nov was slower than what was experienced for a lot of 2012, particularly in the low-rise segment of the market. This was largely down to the fact the mix of single detached houses sold in the City of Toronto this past November modified relative to last year. Specifically, the amount of homes that sold for over one million dollars was down considerably.
While the mix of home types sold may have changed, market conditions remained tight for low-rise home types. This is obvious when we consider the MLS Home Price Index ( HPI ) for the GTA. When we have a look at price through this lens, we find that the baseline price for major home types was up by 4.6 per cent in the GTA in total and 3.9 per cent for the City of Toronto. Interest rates remain mostly unchanged, with a five year fixed mortgage rate of a little over 3 per cent continuing to be available.
Stories on the employment front was positive in Nov, as the Toronto seasonally changed jobless rate decreased to 8.2 per cent, from 8.6 percent the month before.
At this time of year I'm frequently asked whether it is cautious to list one's home for sale over the holidays, and there are in reality numerous benefits to doing that. Too, houses frequently look their absolute best when they're decorated for the holidays, and an expedient emotional reaction to a property often prompts an offer.
Call me to talk about the many other factors you need to consider before choosing to make your next move.
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