Greater Toronto real estate agents reported 8,442 sales through the Multiple Listing Service (MLS) in June. This represented a 23% decrease compared to the record 10,955 sales reported in June 2009. Sales for the second quarter of 2010 amounted to 28,810 – up one per cent annually. Year-to-date sales through June were up 23% to 50,455 compared to the first six months of 2009.

Comment: Wow, we might actually be on track to smash the 100,000 sales mark for the year! Who said things were slow this year?

“We experienced a record number of existing home sales during the first half of 2010, but these sales were weighted more towards the beginning of the year,” said Toronto Real Estate Board President Bill Johnston. “The pace of home sales has moderated from record levels over the past two months with the prospect of higher mortgage rates.”

Comment: Sure, it slowed a bit, but that is normal going into the summer. Also, people held back because they were worried about the impact of the HST. Once they see that it has almost no effect on resale real estate, buyers will get back out there. The fear of rate hikes has also been allayed, with the Bank of Canada raising rates by the bare minimum 0.25%. Thus rates are not going through the roof, which should give more confidence to buyers.

The average price for June transactions was $435,034 – up eight per cent compared to the average of $403,972 recorded for June 2009.

Comment: Yes, sales volume is down, but prices continue to rise. Those sitting on the sidelines waiting for a drop are going to be sorely disappointed. Prices are simply not going down folks. The rate of increase may slow, but even so, then we will be at 5% annually rather than 8%. That is still an upward slope.

“With more homes to choose from in the second quarter, many home buyers have been making less-aggressive offers. This has resulted in less upward pressure on the average selling price,” said Jason Mercer, TREB’s Senior Manager of Market Analysis. “The annual rate of average price growth in the second half of 2010 will be in the single digits.”

In June, the median price was $367,750, from the $345,000 recorded during June of 2009, an increase of 6.6%.

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Contact the Jeffrey Team for more information  –  416-388-1960

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