Home sales drop in August

Sales of existing Toronto homes fell 23% in August compared to 2009. New figures released today show sales dropped to 6,222 (compared to 8,035 in 2009). This is the fourth month for a drop in sales.

The average price is still up 6% compared to last year, despite the lack of bidding wars. Realtors were hoping for a 10% increase but that didn't happen since the Toronto real estate market is shifting to a buyers market. On average prices this year are still up 8%.

“The prospect of interest rate hikes and new mortgage lending rules prompted some households to purchase a home sooner than they otherwise would have this year,” says TREB president Bill Johnston. “The result has been a larger than normal dip over the summer months.”

Analysts keep repeatedly that prices are due for a fall in 2011. It is now taking longer to sell a home, 36 days on average compared with 30 last year, up by 20%. Listings are also up by 20% as the market becomes more flooded.

Homes in the area around Mount Pleasant are considered to be the hot commodities. Ie. Lawrence Park, Leaside, Davisville Village, Moore Park and Rosedale.