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With 6,318 in sales in August,The 2008 Toronto summer market is ending on a solid pace.Sales were down 22 per cent from the record-breaking August 2007 of 8,059 single family dwellings,This sales decline did not occur uniformly across the GTA. Units transacted within the City of Toronto, at 2,437, were down 25 per cent from the 3,243 recorded in August of 2007.Meanwhile sales within the 905 suburbs came in at 3,881, down19 per cent from 2007 (4,816 sales). Prices increased marginally in August, with the overall average moving up one per cent to $364,886 from the $361,890seen last August. Within Toronto proper, the average actually fell one per cent to $377,990 from last August’s $381,681.In the Rosedale part of Toronto (C09). All 29 sales were of detached homes, averaged $2,336,472. This is up six per cent from the $2,203,457.Outside of the City, on the other hand, prices rose two per cent to $356,657 from the $348,563 seen in August 2007. After having dipped by 13% in July to 186,500 units, Canadian housing starts bounced back up to 211,000 units in August, near the 215,000 level recorded in June. The surge in August was particularly visible for condo starts in the cities of Toronto, Brampton and Mississauga according to TD econo-mist Pascal Gautier. TD Economics forecasts modest national average price growth of 2.0% this year and 3.5% next year, down substantially from the 10% annual pace of the last six years . Past price driven erosions in affordability are the main factor behind weaker sales, hence affordability is now set to improve . According to BMO economist Sal Guatieri home - owners who purchased six years ago would still have hefty capital gains, but those who bought during the past two years would face temporary losses -- temporary, because the long-run trend in household income, and hence house prices,is upwards”.
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