Condos take the biggest hit as home sales drop in the GTA

Home sales continue to slide and prices soften, especially in the 416 region, according to the Toronto Real Estate Board, which recorded a 16 per cent decline in sales compared with November, 2011.

Condos took the biggest hit with resale transactions down 25.5 per cent across the GTA and prices down an average of 2.3 per cent. The biggest declines in condo prices were in the City of Toronto, where they were down almost 4 per cent year over year.

See: TREB Market Data

Overall, resale house prices held relatively steady across the GTA, up 1.6 per cent year-over-year to an average of $485,328. But that’s a far cry from the boom days and bidding wars that defined the market up until last spring, with ‘for sale’ signs now gracing front lawns an average of 30 days.

“Transactions have been down on a year-over-year basis since June, after being up substantially in the last half of 2011 and the first half of 2012,” Toronto Real Estate Board President Ann Hannah said in releasing the monthly statistics Wednesday.

“Some buyers pulled forward their decision to purchase, which has impacted sales levels in the second half of 2012.”

Once again, TREB attributed tougher mortgage lending rules — especially the capping of amortizations at 25 years instead of 30 years — and the City of Toronto’s land transfer tax for pushing many buyers to the sidelines.

But also impacting average price growth has been a shift away from pricier homes, says TREB.

“The share of detached homes that sold for over one-million dollars was down substantially, which influenced the overall average price,” says Jason Mercer, TREB’s senior manager of market analysis.

The number of detached homes that changed hands this November compared with November, 2011 was down 13 per cent across the GTA — a drop in sales of 18.5 per cent in the City of Toronto and 10.6 per cent in the 905 regions.

Prices for detached homes were down almost 4 per cent in the City of Toronto, but up 3.5 per cent in the 905 regions, according to the TREB figures, and averaged $741,480 and $556,745 respectively.

Sales of previously owned condos sank by 25.1 per cent in the City of Toronto and 26.5 per cent in the 905 regions. Prices were down 3.9 per cent in the City of Toronto and up 2.5 per cent in the 905 regions over last November, with prices averaging $350,540 and $279,483 respectively.

Semi-detached homes saw an 11 per cent drop in sales, especially in the City of Toronto. But prices held up better in that market segment than all others, with prices up 5.8 per cent in the 905 regions to average $392,067, and 3.8 per cent in the City of Toronto to an average price of $583,117 in November.

Townhouse sales were down 13.6 per cent overall across the GTA, with the biggest decline recorded in the City of Toronto, where sales were off more than 28 per cent. Average prices were up 5.3 per cent in the 416 region to $440,930 and 1.3 per cent in the 905 regions to an average of $347,461.

New MLS listings were up slightly year-over-year, with 9,838 homes for sale across the GTA last month. A total of almost 5,800 homes changed hands across the GTA in November, down from 6,908 a year earlier.

Source: Toronto Star