The Toronto Real Estate Board has released its MLS statistics for the first two-week period in November, finding that home sales have dropped by 17.5 per cent when compared to the same time last year. This represents a total of 2,687 homes being sold in the Greater Toronto Area during this time period.

According to Ann Hannah, the president of the Toronto Real Estate Board, “The reduction of the maximum amortization period to 25 years translated into higher mortgage payments. Some households will have to save more money for a down payment before purchasing a home, in order to offset these higher mortgage costs. This is more difficult in the City of Toronto, where households must pay an additional land transfer tax up front. The abolishment of this tax would allow buyers to have a larger down payment.”

Home prices during the first 14 days of November increased by 1.7 per cent to an average selling price of $488,647.

“During the first half of November, there were fewer luxury detached homes sold as a percentage of total transactions compared to last year.  The year-over-year change in the mix of detached homes sold in the GTA, rather than a change in market conditions, was responsible for a lower than normal increase in the average detached home price,” said the senior manager of market analysis for the Toronto Real Estate Board, Jason Mercer.

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