June 5, 2010
The home resale market in Toronto is no longer on fire. Prices are still up and homes are still selling but its as if someone turned down the temperature in the oven – its just not as hot as it was.
According to the Toronto Real Estate Board, there were only 9,470 sales through the MLS in May 2010. This is actually a one per cent dip in the number of transactions from May 2009. However, last month was still the third highest May sales result on record – not bad.
The decline is somewhat understandable considering many purchasers raced to purchase early this year to capitalize on low mortgage rates.
In addition to the dip in transaction volumes, price increases are also decelerating. According to the House Price Index‘s most recent report, Toronto resale home prices remained flat from February to March 2010. Prices, however, are still up 15.5% year over year.