Toronto housing sales suffer big drop in March
Last Updated: Friday, April 4, 2008 | 9:21 AM ET
CBC News
There are continuing signs of a substantial slowdown in Toronto's red-hot housing market.
It's the second consecutive month of double-digit decline in the number of properties sold.
Some experts are blaming the weather and Toronto's new land transfer tax, which took effect on Feb. 1 and can add thousands of dollars to the final cost of homes in the city.
In February, "the market slowed, prices did not drop, but the number of sales did, down eight to 12 per cent in overall sales," said Darryl Mitchell, area manager for central Toronto for Royal LePage Real Estate Services Ltd.
The weather in February also affected sales, said Mitchell.
"You couldn't make it down Toronto streets" because of snow, he said. "That made people stop buying or not list their properties."
But prices "still didn't drop and we were still seeing multiple offers on any really well-priced good listings, so demand remained strong."
But in March, there was a 27-per-cent drop in sales compared to the same period last year.
"It's a huge drop compared to what we [have] seen in the past and that's the reason why people are concerned, and why people are asking questions," said Von Palmer of the Toronto Real Estate Board. "We know the weather was bad but we can only blame the weather for so long."
Toronto real estate agent Richard Silver admits a rough winter combined with the increased land transfer tax affected sales, but he said the last few months are just a blip.
Silver said the cost of a house in Toronto continues to rise, averaging more than $400,000.
But, he also said, many mortgage brokers he deals with have clients poised to purchase.
"They say they have a lot of pre-approvals, they have a lot of people who are waiting to buy. They are looking at a lot of information. They are expecting that the market prices may go down," he said.
Silver is predicting a spring and summer with a return to double-digit growth.
With files from the Canadian Press
