December 14, 2012 -- A fair number of resale home transactions took place across the Greater Toronto Area in November, with 5,793 houses changing hands. This represented a Sixteen % decline from 6,908 sales in Nov 2011.
In Toronto 2,308 transactions took place last month compared to 2,952 sales a year ago - a decrease of nearly Twenty-eight %. Meanwhile 3,485 houses changed hands in the 905 Regions, a lessening of more than 13 % from 3,956 sales in November 2011.
A key factor which has influenced the dip in sales experienced recently is related to the changes in mortgage lending rules that came into effect in July. The changes reduced the maximum amortization period from Thirty years to 25 years and set a purchase price ceiling for government backed insured mortgages at 1,000,000 greenbacks. These regulations have led to some households putting their decision to buy on hold while they save up extra cash for a down-payment and / or experience an increase in their income. Adding to this situation in the City of Toronto is the extra up-front Land Transfer Tax, which takes money from house purchasers that would otherwise be used to negate the extreme costs of home possession. This represented an increase of 1.6 per cent compared against a year gone.
While sales decreased year-over-year in November, a modest overall price increase was reported, with the median price of a GTA home reaching $485,328.
The 905 Region, with an average cost of $463,779, showed a price increase of 4 per cent compared to a half-percent dip in the City of Toronto average home price, which was $517,866.
The speed of typical price expansion in November was slower than what was experienced for much of 2012, especially in the low-rise segment of the market. This was largely thanks to the fact that the mixture of single detached homes sold in the City of Toronto this past Nov modified relative to last year. Specifically, the amount of houses that sold for over 1,000,000 greenbacks was down considerably.
While the mixture of home types sold could have changed, market conditions remained tight for low-rise home types. The MLS HPI tracks the price change for benchmark homes to explain : a home with the same features over a period. This is evident 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 benchmark price for major home types was up by 4.6 percent in the GTA in total and 3.9 percent for the Town of Toronto.
Reports on the work front was positive in Nov, as the Toronto seasonally adjusted unemployment rate reduced to 8.2 percent, from 8.6 % the month before. Rates remain largely unvaried, with a five year fixed mortgage rate of just over 3 % continuing to be available.
At this time of the year I'm regularly asked if it is cautious to list one's home for sale over the vacations, and there are actually multiple benefits to doing that. Consider that those viewing houses at this time of year are more likely to be heavy buyers. As well, homes frequently look their absolute finest when they are decorated for the vacations, and a good emotional reaction to a property often prompts an offer.
I encourage you to chat to a Larger Toronto REALTOR about the many other considerations you must consider before choosing to make your next move and meanwhile, be certain to go to visit www.TorontoRealEstateBoard.com for all of the latest updates on the market.
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