Toronto home sales slump 10 per cent in mid-May, but prices continue to climb

House sales were down almost 10 per cent in the first half of May, but prices climbed by one of their highest levels in months — a 5.4 per cent gain driven largely by sales of detached homes.

But even condos more than held their own. While sales were down 13 per cent across the GTA, and the inventory of units for sale remains above historic norms, prices were up 1.1 per cent overall across the GTA — 2.1 per cent in the city.

Sales of all housing types took the biggest tumble in the City of Toronto where they slumped by 11.4 per cent year over year, fuelled largely by a 21.3 per cent drop in townhouse sales and a 13.6 per cent in condo sales, according to mid-May sales and price figures released Thursday by the Toronto Real Estate Board.

The 905 regions saw an 8.6 per cent decline in sales over mid-May of last year, thanks largely to an 11.6 per cent slump in condo sales and 9.6 per cent decline in the sale of townhomes.

But despite the lower sales numbers, the average transaction price during the first two weeks of May was $543,838, a 5.4 per cent increase over the same period last year and one of the biggest price gains seen in the last few months.

A 2.1 per cent increase in resale condo prices in the City of Toronto saw the average condo sale hit $377,341 in mid-May, according to the TREB figures. In the 905, prices dropped by 1.4 per cent, bringing the average unit sale price to $285,851.

The sale of detached homes declined by 7.5 per cent across the GTA, with a drop of 6.7 per cent recorded in the City of Toronto and 7.8 per cent in the 905 regions.

Average sale prices jumped 5.6 per cent for detached homes across the GTA, with the biggest price hikes in the 905 regions (up 7.5 per cent to an average price of $615,563) followed by more modest increases in the 416 region (up two per cent to $855,334) where the inventory of homes for sale remains tight.

Semi-detached house sales were down 7 per cent across the GTA, with the decline slightly bigger in the 905 regions than the 416. But prices were up 5.5 per cent in the city, to an average $630,984, and 3.2 per cent in the 905 regions to $414,835.

New listings were up three per cent, year over year, said Jason Mercer, senior analyst for TREB, who pointed to Toronto’s land transfer tax, and relatively higher house prices, for the fact sales have been slumping more in the city than the suburbs the last few months.

Original Article
Source: thestar.com
Author: Susan Pigg