A Glorious Summer Day
in Toronto by Benson Kua
Toronto Realtors reported 7,542 sales in August 2011 — an increase of 24 per cent compared to the same month of the previous year. The market shows steady growth, but is not accelerating significantly: there were 380 fewer sales than in July 2011 (when there were 7,922 items sold).
With new listings reaching 12,509 items (20 per cent more than in August 2010), the growth in sales outpaces the stock growth.
"Home sales will be bolstered by low mortgage rates moving forward. The Bank of Canada is expected to be on the sidelines until the second half of 2012 or even into 2013. However, home ownership affordability in the City of Toronto could be further improved with the removal of the City's land transfer tax. This tax currently represents a substantial upfront cost for home buyers," said Toronto Real Estate Board President Richard Silver.
The average price increased by 10 per cent on a year-to-year basis, and now totals $451,663. Despite the general lack of global economic optimism in 2011, this year remains one of the strongest in recent TREB history, with annual sales predicted to reach 90,000 properties, making it the second best year in sales for the Greater Toronto Area.