Toronto, September 11, 2012.
The August 2012 sales statistics are out and once again we have declining sales compared to 2011. This time the numbers are down 12.5% from 7,330 sales in August 2011 to 6,418 sales in August 2012.
What is contributing to this sales decline? Working in the field it appears "affordability" is becoming an issue. Average prices are 6.5% higher in 2012 from 2011. Up 16% in detached homes in the Toronto 416 area.
We also have the new "mortgage rules" which are showing their impact. Reducing the Amortization from 30 years to 25 years in essense reduced the buying power for many first-time home buyers.
Finally the Toronto Land Transfer Tax is pushing off people from selling and buying another home. When you calculate Land Transfer Tax on a $500K average price home in Toronto you are paying $6,475 of Provincial Land Transfer Tax now add the Toronto portion and you are almost doubling the cost to a whopping $12,200 in taxes. So if you had to sell and buy again, you are looking at $14K - $15K of total closing costs on the buying end... notwithstanding fees and costs associated with selling. This is causing some people to rethink selling. That is why I'd say new listings are down as well in August. Inversely this will help to keep prices up as market conditions stay tight. So if anyone was hoping for prices to fall. Not anytime soon.
For your information: The MLS® Home Price Index (MLS® HPI)* composite index, which allows for an apples-to-apples comparison of benchmark home prices from one year to the next, was up by 6.3 per cent year-over-year.
5 Home Buying Tips + Videos:
1. Work with a mortgage lender and find out what you are pre-approved for.
2. Work a monthly budget and figure out what you are comfortable spending on housing on a monthly basis.
3. Choose an area that you want to move in.
4. Work with a trusted Realtor, let them know your budget plan and have them determine exactly what can be purchased in your choice of location and buyer criteria.
5. View properties and put an offer in.
Remember ASK a lot of questions. There are no dumb questions. Buying is a nervous time and holding back from your trusted Realtor will only dampen your buying experience. It is better to get your questions answered than being stressed. Oh by the way, I would be more than happy to help you or your family and friends buy or sell a house or condo.
Videos on "Are You Fit To Buy?"
Jas Jagpal, Broker at RE/MAX Dynasty Realty Inc. He has formed 2 teams. One specializing in Investing, primarily in condos and the second helping clients sell their houses in the GTA. No matter what your needs are, contact him if you are looking to buy, sell or invest in the Greater Toronto Area.
Choose Results, Honesty & integrity. Choose Team Jas Jagpal.
Jas Jagpal, Broker 647.272.6629 jasjagpal@gmail.com Office: 905.471.0002
Jess Jagpal, Sales Representative jessjagpal@gmail.com 416.312.9742
Posted via email from Markham Houses : Markham Condos For Sale- Investment, Pre-Construction, Resale
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