torontohomesales2012 Home resales in Toronto dropped 19.5 per cent in December according to figures released today by the Toronto Real Estate Board.

There were 3,690 sales through the Toronto MLS system in December 2012 — a notable decline from the 4,585 sales in December 2011. There were 85,731 transactions in 2012 — a 3.8 per cent decline from 2011’s 89,096 sales.

“The number of transactions in 2012 was quite strong from a historic perspective,” TREB’s President Ann Hannah explained in a press release. “We saw strong year-over-year growth in sales in the first half of the year, but this growth was more than offset by sales declines in the second half.”

Hannah cited stricter mortgage lending guidelines, introduced by Finance Minister Jim Flaherty in July, as a reason for the decline as it resulted in some households postponing their home purchase.

The average selling price rose year-over-year in December to $478,739, an increase of 6.5 per cent. As a whole, the average selling price for 2012 was up by nearly 7 per cent to $497,298.

“Price growth was strongest for low-rise homes, including singles, semis and townhouses,” said Jason Mercer, TREB’s Senior Manager of Market Analysis. “Despite a dip in sales, market conditions remained tight for these home types with substantial competition between buyers.”

TREB released two charts detailing sales and average price by area and home type for December 2012. Have a look below…

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