Early May sales fall, but prices up
More homes linger for longer as average days on the market jumps to 35 from 28
From Friday's Globe and Mail
May 23, 2008 at 12:00 AM EDT
The first half of May has prolonged a trend toward lower resale home sales, according to the Toronto Real Estate Board, but prices continue to rise.
TREB reported that 4,422 homes changed hands in the Greater Toronto Area in the first two weeks of this month, a 12 per cent decline compared to the 5,003 homes sold during the first half of May 2007. Prices however, rose to an average $400,817, up six per cent from the $377,612 reported a year ago.
Houses are also staying on the market longer, languishing an average 35 days before finding a buyer, compared to just 28 days a year ago.
The sales drop off was pronounced in the city of Toronto, where there were 1,734 sales - representing a 15 per cent decline from the 2,053 homes sold during the first half of May 2007 and an 11 per cent decline from the 1,941 homes sold during the same period in 2006. The average house price in the city is now $437,205, up six per cent from $412,701 a year ago.
In the 905 Region, there were 2,688 sales, down nine per cent from 2,950 a year ago but up four per cent from the same period in 2006. At $377,688, the average price is up seven per cent from the $353,192 recorded during the same time frame in May of 2007.
Despite the overall decline, some neighbourhoods showed healthy increases.
In the Annex, transactions rose 39 per cent compared to the same period a year ago, driven by strong condominium apartment and detached home sales. The Danforth saw sales increase 29 per cent overall and interest in detached homes also led Streetsville to a five per cent overall sales increase.
Richmond Hill South saw strong sales in most property types resulting in a three per cent increase compared to a year ago.
"In recent years, home buyers have faced a major challenge with respect to limited selection," said Toronto Real Estate Board President Maureen O'Neill. "Now though, inventory is up 11 per cent compared to a year ago, which has resulted in more choice for home buyers."
