In May Sales remain high, GTA Realtors reported 9,470 sales through the MLS in May 2010, representing a 1% dip from May 2009. In comparison to previous years, this was the third highest May sales result on records. “The pace of transactions slowed in May following record-setting sales in Feburary, March & April” said Toronto Real Estate Board President Tom Lebour. “Buyers who otherwise would have been purchasing a home in May moved more quickly this year, likely to get ahead of mortgage rate hikes”.
New Listings were up 38 per cent annually to 18,940. The average price for May transactions was $446,593 – Up 13% compared to the average of $395,609 recorded in May 2009.
“The gap between listings and sales has widened, which means there is more choice for buyers,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.
New mortgage rules unveiled by Finance Minister Jim Flaherty in April aimed at curbing speculation are expected to “marginally impact” activity, the agency said.
Although mortgage rates have gone up and are expected to rise further, the association says the higher cost of borrowing will have a minimal impact on the market this year.
“Interest rates are expected to rise slowly and at a measured pace during a new era of government spending restraint, so home financing will remain within reach for many homebuyers,” CREA president Georges Pahud said.