TREB Market Watch

Average Price Up in October, Despite Fewer Sales

“Sales have decreased in the second half of this year compared to 2011, largely due to stricter mortgage lending guidelines taking effect July 9^th 2012. The prospect of higher monthly mortgage payments due to the reduced amortization period has prompted some households to delay their home purchase,” according to (TREB) President Ann Hannah.

In October  Greater Toronto Area REALTORS® reported 6,896 transactions through the TorontoMLS system in October 2012 – a decrease of 7.1 per cent over October 2011.
The average sale price was $503,479 – up 6.2 per cent compared to October 2011. The MLS® Home Price Index composite benchmark price, which allows for an apples-to-apples comparison in terms of home attributes, was up by 5.1 per cent.

“We continue to see price increases well above the rate of inflation. Active listings have remained low from a historic perspective creating competition among Buyers, especially for low-rise homes,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.

“It should be noted, however, that the annual rate of price increase has been edging lower over the past few months as the market has gradually become better supplied,” continued Mercer.