The worsening economic situation appears to be dampeningGTA home sales activity, driving down prices and leaving homes on the market longer, suggests the Toronto Real Estate Board's latest report.
In January, GTA realtors recorded 2,670 home resales -- a decline of 47 per cent compared to the 5,075 sales in January 2008.
The average house price declined to $343,632, compared to $374,449 a year ago.
"The GTA housing market has not been immune to the economic slowdown in Canada. Some potential home buyers were less-certain about their positioning in the economy over the past year," the board wrote in its monthly analysis.
"Until the economy rebounds, and along with it consumer confidence, the number of existing home sales will be more moderate in comparison to the average over the last 10 years."
However, Jason Mercer, the board's manager of market analysis, told ctvtoronto.ca that in the longer term, the GTA remains a good place to invest in real estate, given the area's population growth.
In addition, this is a relatively affordable time to buy -- if one's economic situation allows it -- as mortgage rates remain low. In addition, there isn't the affordability crunch that affected GTA homebuyers during a similar period in the early 1990s, he said.
Mercer said there is more buyer choice right now, as evidenced by the ratio of sales to active listings.
Homes are staying on the market longer. The average property spent 49 days on the market in January, compared to 36 days in January 2008.
Most properties are selling for less than their asking prices. Most are fetching about 95 to 96 per cent of asking price.
The median price in January was $303,000, compared to $319,000 one year earlier.
A median price is the mid-point of all sales if ranked in ascending order.
Here are the median prices by dwelling type. Keep in mind that condo apartments and detached homes account for about 70 per cent of sales:
- Detached - $365,000
- Semi-detached - $310,000
- Linked - $275,000
- Condo townhouse - $230,000
- Condo apartment - $227,000
- Attached, row and townhouses - $286,000
- Co-op apartment - $148,551
- Detached condo - $180,000
