Toronto Real Estate Sales Down 19% in May

John Pasalis in Toronto Real Estate News

The Toronto Real Estate Board recorded 9,411 sales in the Greater Toronto Area in May 2008, a 16%  decline over last year.  Prices increased by 4% over last year.  Here are some of the key numbers:

• Sales in the city of Toronto declined 19%
• Sales in the 905 region declined 13%
• Prices increased 3% in the city of Toronto
• Prices increased 5% in the 905 region

Download the complete May 2008 Market Watch report here.

Here are the latest numbers from the Toronto Real Estate Board's press release:

The Greater Toronto Area resale housing market recorded 9,411 transactions in May, Toronto Real Estate Board President Maureen O’Neill announced today.

On a year-over-year basis the GTA average price increased four per cent to $398,148 in May from the May 2007 average of $382,787. Prices increased three per cent in the City of Toronto to $434,271 from $422,163 during the same period a year ago, while in the 905 Region there was a five per cent increase to $374,629 from $355,341 last May.

“Price gains show that real estate continues to be a solid investment for the consumer,” said Ms. O’Neill. “We are confident about the market because employment in the GTA continues to be strong and interest rates remain low. As long as consumers have the financial resources to buy homes and a variety of choices to manage carrying costs, the market should remain stable.”

“May’s sales figures represent a 16 per cent decline in the GTA from the record month a year ago when 11,146 sales were recorded,” said Ms. O’Neill. “More than 9,000 properties changing hands still represents considerable market activity.”

In the City of Toronto, there were 3,711 sales, down 19 per cent from last May’s 4,578 sales and down 6 per cent from May 2006. In the 905 Region, 5,700 transactions were recorded, which represents a 13 per cent decline from the 6,568 sales during the same period a year ago but up 4 per cent from May 2006.

“The Toronto Land Transfer Tax has been in effect for four months and the decline in sales has been running for the same time period,” said Ms. O’Neill. “We’re keeping a close watch on the effect of this new tax.”

Two specific areas North of Toronto experienced increased sales activity in May. In Uxbridge (N16) sales were up 10 per cent, while Stouffville (N12) saw a 12 per cent increase in sales, driven mainly by detached home transactions.

John Pasalis is a sales associate at Prudential Properties Plus in Toronto and a founder of Realosophy. Email John

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Comments

[tman]

I think you should mention in your blog that the ontario land transfer tax rebate now applies first time buyer's of resale homes. The bill was passed may 14th and is now law. Cheers!
here is the link:
http://www.rev.gov.on.ca/english/refund/newhome/

[John Pasalis]

Thanks for the comment tman. I'll follow up with a post shortly.

[Zaid]

How do the numbers compare to Dec-April?

I am wondering if we are actually saw a peak somewhere and are having a month to month decline

[John Pasalis]

Hi Zaid,

Sales have actually been on the rise over the past few months, but we expect this given that sales are very seasonal, rising in the spring and declining in the winter. This is why we usually compare sales in one month to the same month in the previous year. To eliminate the seasonal impact on the numbers. Take a look at this post I wrote called making sense of real estate statistics for more info. You can find it here.
http://www.movesmartly.com/2007/10/making-sense-of.html