"Real Estate Bits"

June 4, 2008 - The Greater Toronto Area resale housing market recorded 9411 transactions in May, Toronto Real Estate Board President Maureen O’Neill announced today.

On a year-over-year basis the GTA average price increased 4% to $398,148 in May from the May 2007 average of $382,787. Prices increased 3% in the City of Toronto to $434,271 from $422,163 during the same period a year ago, while in the 905 Region there was a 5% increase to $374,629 from $355,341 last May.

“Price gains show that real estate continues to be a solid investment for the consumer,” said Ms. O’Neill. “We are confident about the market because employment in the GTA continues to be strong and interest rates remain low. As long as consumers have the financial resources to buy homes and a variety of choices to manage carrying costs, the market should remain stable.”

“May’s sales figures represent a 16% decline in the GTA from the record month a year ago when 11,146 sales were recorded,” said Ms. O’Neill. “More than 9000 properties changing hands still represents considerable market activity.”

In the City of Toronto, there were 3711 sales, down 19% from last May’s 4578 sales and down 6% from May 2006. In the 905 Region, 5700 transactions were recorded, which represents a 13% decline from the 6,568 sales during the same period a year ago but up 4% from May 2006.

“The Toronto Land Transfer Tax has been in effect for 4 months now and the decline in sales has been running for the same time time period,” said Ms. O’Neill. “We are keeping a close watch on the effect of this new tax.”

Two specific areas North of Toronto experienced increased sales activity in May. In Uxbridge (N16) sales were up 10%, while Stouffville (N12) saw a 12% increase in sales, driven mainly by detached home transactions.