Has Toronto real estate HIt the Tipping Point?

Excessive Taxation, Overheated bidding Wars, Lack of Inventory, Inner City Issues, Transit, Tightening Mortgage Rules, Reduced Amortizations, Double Land Transfer Tax in Toronto, Proximity to Employment;

What is your hot button issue?   Have we hit the tipping point for bidding wars?

The Toronto Real Estate market seems to be slowing, pensive, waiting for a sign....  or is that a stall?

TREB figures released mid September;

September 18, 2012 -- Greater Toronto Area (GTA) REALTORS® reported 2,544 transactions through the TorontoMLS system in the first 14 days of September. This result was down by 15 per cent compared to the 2,995 sales reported during the same period in 2011.

“The combination of stricter lending guidelines, rising home prices and the added upfront cost associated with the land transfer tax in the City of Toronto resulted in a slower pace of sales during the summer of 2012 compared to a year ago,” said Toronto Real Estate Board (TREB) President Ann Hannah.

The average selling price for sales during the first two weeks of September was $496,786 – representing an annual rate of increase of more the 9.5 per cent. Average selling prices were up for both low-rise and high-rise home types, including condominium apartments sold in the ‘416’ area code.http://www.torontorealestateboard.com/market_news/release_market_updates/news2012/nr_mid_month_0912.htm

The CBC Peter Mansbridge and Crew have interesting conversation.  Worthy of the time investment.   Interesting conversation about employment incomes, spin off employment from construction and rebuttal and how discretionary spending from your personal piggy bank [Home Equity Line of Credit] has been curtailed.

http://www.cbc.ca/player/Shows/Shows/The+National/ID/2281458681/




My conversations with colleagues, as we show and inspect houses, is that there is a hesitation and we are starting see price reductions posted on desirable properties.  If you were over priced by 5% you merely waited 5 or 6 months for the market to catch up with your pricing.

What do you think?
Add your comments...