The Toronto Real Estate Board published their monthly sales statistics last week and the slow down we’ve been seeing in the real estate market continued in June.
Sales were down 5.4% across the GTA in June but the City of Toronto accounted for virtually all of the decline showing a 13% drop in sales. Sales in the 905 were comparable to last year.
In TREB’s press release they unfortunately attempted to explain this decline in sales by arguing that home buyers may be opting to buy homes in the 905 vs the 416 to avoid paying the City of Toronto’s land transfer tax. TREB has recently stepped up their PR efforts to get the City of Toronto to repeal the land transfer tax which explains how it suddenly crept into their press release. As I told the CBC last week, it’s silly to suggest that home buyers suddenly woke up in June 2012 (four years after the tax was introduced) and decided they want to buy a house in the suburbs rather than in Toronto because of the land transfer tax.
Instead of just focusing on the sales figures for June I thought it would be interesting to take a quick look at how the real estate market in Toronto has changed during the first six months of 2012.
As I mentioned in a previous post, sales in Toronto got off to a very quick start in 2012 with a significant number of homes getting multiple offers. The following chart shows the number of sales per month over the past four years.