Friday, September 03, 2010

Toronto home resales drop in August

The Toronto Real Estate Board reported that home resales took another hit in August, dropping by 23 percent from the same month last year.

A rush to buy in the spring has made this summer's drop noticeable, but does not reflect negative numbers in general.

"Sales were probably a little bit higher than expected in the first half of 2010, and now we're seeing a bit of a balancing out in the second half," the board's Jason Mercer told 680News.

"As people were looking down the barrel of interest rate hikes from June onwards this year, and also we saw new regulations around mortgage qualifications, we saw some people pulling forward their buying intentions," he added.

"I really do think that the interest rate environment and also new regulations on borrowing [were key factors] that influenced people's decision to purchase sooner rather than later in 2010."

Meanwhile, the value of homes throughout the city has gone up by six percent from August last year, with the average urban house now selling at $411,000.

Furthermore, home sales have steadily climbed year to year.

The Real Estate Board does not expect to see a record level of sales towards the final months of this year, but the market may be strong enough for house prices to continue rising.

Source: Shauna Hunt & 680News staff

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