Greater Toronto Area REALTORS® reported 7,569 residential transactions through the TorontoMLS system in August 2013. This represented a 21 per cent increase compared to 6,249 sales in August 2012.
Detached sales in Vaughan fall below 50% of total sales for first time
In Vaughan, we saw a corresponding increase with 334 reported transactions in 2013 compared to 264 in 2012, accounting for a 27 per cent increase.
“Sales were up strongly this past August for all major home types compared to last year. Many households have accounted for the added costs brought on by stricter mortgage lending guidelines and have reactivated their search for a home. These households have found that a diversity of affordable ownership options exist throughout the GTA,” said Toronto Real Estate Board President Dianne Usher.
The average selling price for August 2013 was $503,094 – up by almost 5.5 per cent compared to the average of $477,170 in August 2012. The MLS® Home Price Index (HPI) composite benchmark was up by 3.7 per cent over the same period.
By contrast, in Vaughan, the average selling price for August 2013 was $626,262 – which was down by 4.0% per cent compared to the average of $652,338 in August 2012. As I always pontificate, averages are often misleading. When we take a closer look, we continue to see the impact of intensification and the additional housing stock being introduced into the Vaughan market in the way of higher density product. Combined with the continual increase in prices (albeit tempered) and tightening mortgage lending, the demand for lower entry points is a classic cause and effect.
We can readily see this in the month of August by examining the mix of sales. Whereas in August 2012 higher priced detached homes accounted for 58% of total sales, in August 2013 they only accounted for 48%. Consequently, this led to the drop in overall average prices.
To review August results in greater detail by property type, please visit our Vaughan housing charts page