Resale housing market conditions remained moderate in the Greater Toronto Area last month. With 6,310 homes changing hands in September, activity declined 23 per cent from the same month a year ago when there 8,196 sales.
In the 905 region, there were 3,811 transactions while 2,499 sales took place in the 416 area. Compared to the 4,855 transactions that took place in the 905 region in September 2009, activity decreased by nearly 22 per cent. In the 416 area, sales decreased 25 per cent from a year ago when 3,341 properties changed hands.
From a broader year-to-date perspective though, the market has performed very well. Sales in the first nine months of this year reached 69,069, an increase of 4 per cent from the same period a year ago. It’s also important to note that while many homebuyers undertook transactions in the first half of this year to avoid the impending harmonized sales tax, the HST does not, in fact, apply to the purchase price of resale homes. It is only applicable to newly constructed homes and professional services associated with real estate transactions.
September’s home values, meanwhile, continued to show strength. The average price of a home in the GTA last month was $427,329, a nearly 5 per cent increase over the September 2009 average of $406,877. Price growth was marginally stronger in the 416 area than in the 905 region. In the 416, the average price of $465,890 rose 6 per cent from $437,182 a year ago. In the 905 region, the average price of $402,044 grew nearly 4 per cent from September 2009’s average price of $386,022.
Active listings increased nearly 4 per cent last month with 20,334 homes available for sale throughout the GTA, compared to 19,563 a month earlier. This increased offering did not negatively impact the number of days that homes are currently on the market before being sold, as the August average of 36 days decreased to 33 days in September.
It is important to recognize that while current conditions are not on par with the first half of the year’s record-setting pace, factors that are essential to a healthy housing market remain in place.
Today’s low interest rates, for example, mean that only a moderate share of the average household income must be directed toward mortgage payments, contributing to the affordability of resale homes in the GTA. As well, more than nine out of 10 people in our province continue to be employed. These aspects, combined with the fact that demand for housing will continue to be fueled by new immigrants and the children of the Baby Boom generation, show that the outlook for our housing market remains favourable.
Published on 8 October, 2010 Toronto Star by Bill Johnston
