Strong Sales continue May.
As expected, the spring market continued as 10,850 single family homes were sold throughout the Toronto MLS system in May 2012 – an 11% increase over the 9,766 sales in May 2011. The average price now stands at almost $505,000, a slight increase over last month.
Sales growth was strongest in the ‘905’ regions surrounding the City of Toronto across all major home types. While lower average prices are certainly one factor that has contributed to this trend, recent polling also suggests that the City of Toronto’s land transfer tax has also prompted many households to look outside of the City for their ownership housing needs. Without a doubt, this is further proof that over-taxation has a negative impact on prices and purchasing activity.
The good news for buyers was that in May, the number of new listings was up substantially on a year-over-year basis, rising by more than 20 per cent to 19,177. Should this increase in the listing inventory continue, it will begin to moderate the annual rate of housing price growth. While investors want prices to keep increasing, homeowners are better off with stable and moderately increasing prices, because as a general rule, when one sells a home, one ends up buying another one. All in all, reasonable price increases are better for all concerned.
June sales will be strong as well. As we head into July and August, sales will slow down due to lower demand (summer market) and an increased supply.
If you have been considering purchasing or know of someone who is considering, July/August will be a great time to do so. A house does not sell itself, and the summer months are when you need a committed marketing expert to help you get the results you want! So if you know of someone who has been trying to sell their home without success, please make sure you have them give me a call because I would love to help. I am never too busy for your referrals!
Have a great June!