18% fewer detached homes were listed in August, but the inventory of existing listings was higher by 6%.

It is interesting to compare the real estate sales this summer to the same period in 2011 in several high end neighbourhoods of Toronto.

Lawrence Park:

In Lawrence Park just one fewer home was sold over the period of almost 3 months this summer, but the average price was lower by 9%, and the time required to sell a home more than doubled. The selling price as percentage of the listing price was also lower.

Leaside:

In Leaside four more detached homes were sold this summer, and the average price was higher by 9.6%, but the average time required to sell a listing was longer by 36%. The selling price as percentage of the listing price was also marginally higher this year.

Forest Hill North:

In Forest Hill North two more detached residence were sold this summer, and the average price of a detached home was higher by 13.3%. But the time required to sell a listing was longer by 74%, and the selling price as percentage of the listing price was, on avergae, only 97.5% this year, compared to 104.9% in 2011.

The volume of sales has been substantially lower this summer. 1816 condos were reported sold between July 1st and September 19th. That compares to 2603 sales in the same priod last year, a drop of 30%.

Even more pronounced was the difference in sales over the listing price. 114 such sales happened this summer, compared to 271 last year - a drop of 58%.

The smallest difference in volume, by only 5 condo units, was in the C02 district.

The following table compares the sales in the central MLS districts of the City of Toronto.

In a series of three articles we will examine the number of freehold homes sold in each of Toronto's MLS districts in the central, east and west sections. We will also look at the number of homes sold above the asking price, the highest percentages above asking in each of the districts, the highest dollar amount paid over the listing price, and the highest sale price.

For comparison, we will look at the number of sales, the highest sale price, number of sales over asking, highest percentage over the listing price and the number of homes sold over asking in the same period in 2011.

One has to remember that the highest percentage over the asking price does not necessarily correspond to the highest dollar amount over asking.

The following table lists these parameters for the central Toronto MLS districts.

Canadian Consulting Engineer published an article and a video on new storm water system being constructed in the West Don Lands development. That system is now in construction, and it is anticipated that it will be finished in mid-2013. It will be the largest such project in Canada.

Home sales in Rosedale between July 1 and August 30

In the same period of last year, 17 residences were sold in Rosedale. Average listing price was $1,446,176 (between $635,000 and $2,395,000); average sale price - $1,389,353 (between $615,000 and $2,310,000); average relation between sale and list price was 96% (with lowest 89% and highest 104%); average days required to sell 38 (from 4 to 110).

Although the number of sold residences was considerably higher in 2011, but all other results were higher this year, albeit some very slightly. It seems that the lack of available listings influenced the number of sales.

Home sales in Forest Hill between July 1 and August 30

Last summer in Forest Hill only 9 homes were sold. Average listing price was $1,556,111 (between $929,000 and $2,749,000); average sale price was $1,486,000 (between $899,000 and $2,515,000); average relation between selling and listing prices was 96% (from 86% to 108%); average time required to sell a property was 37 days (between 6 and 80 days).

Home sales in Bridle Path between July 1 and August 30

For comparison, Bridle Path sales last year were higher. 13 luxury residences sold between July 1 and August 30, 2011. Average list price was $3,197,769 (between $1,299,000 and $7,250,000); average sale price was $3,197,453 (between $1,245,000 and $6,488,888); average relation between selling and listing price was 95% (from 89% to 103%); and the average time required to sell a listing was 35 days (from a low of 1 day to a hhigh of 96 days).

To get a feel how the market is behaving this summer, we are comparing here real estate sales of condo apartments, co-op units and condo townhouses in a few Toronto neighbourhoods.

Yonge & St. Clair condo, co-op and townhouse sales in July and August

Between the beginning of July and August 28th, 9 condos and 1 co-op were sold in the Yonge - St. Clair neighbourhood. Only one of these sold for full price, two other sold above asking. Remaining six condos were sold between 95% and 99% of the listing price. Only one unit - the co-op apartment - was sold in less than 10 days.

In the same period of last year 1 co-op apartment, 8 condos and one townhouse were sold. The average price was $461,850, and the same number of units, three, sold at or above the asking price. Two of them sold for full price, and only one above (103%).

Rosedale condo, co-op and townhouse sales in July and August

17 units were sold this year between the beginning of July and August 28th in Rosedale. Three of them were co-op apartments, eleven were condo suites, and three condo townhouses. Two of these units sold for the asking price, four above asking, and eleven between 91% and 99%.

Last year, during the same period in Rosedale, 18 condo apartments, three co-op units and one townhouse were sold. One of them sold for full price, five above asking, and remaining 16 below the listing price (between 93% and 99%).

Forest Hill condo and co-ownership sales in July and August

In Forest Hill, only five units were sold this year between July 1st and August 28th. One of these was a low priced co-ownership apartment, the rest were condos. None sold above the listing price.

While the activity in the first two communities didn't chenge much year-over-year, the same period of last year in Forest Hill painted a different picture. 13 condo apartments sold in that period of time in 2011. But only one of these sold for full price, and one more for 101% of asking. Remaining 11 condos sold between 93% and 99% of the listing price.

To put it into perspective, last year 175 homes were sold in the same period, with 80 of them (or 46%) sold for 100% or more of the listing price.

The following table illustrates full price or above asking sales in central Toronto area.

Most communities had only one sale at or above listing price in the second half of August. Table below lists the numbers of such sales in Toronto communities.

Among the homes that were sold for 100% or over the asking price were two attached homes, eight semi-detached, eighteen detached homes and one duplex.

The most expensive of these properties sold for full asking price. It was an older home on a good size ravine lot, and it required renovation. The home which was sold for the highest percentage of the listing price was being sold for land value only. Listed with an asking price of $465,000, it was sold for $601,000.

Today, we would like you to look at two tables illustrating central Toronto (MLS districts C01 to C15) freehold home sales in the period between August 1st and August 22nd in 2011 and 2012.

Looking at this data, it may not be immediately obvious what is the difference between real estate sales activity in these two time periods, but the sales this year have been fewer, by 35%. The differences, however, are not uniform. Sales remained stable in C01, C09, and C12. But while the average price dropped in C01, it rose in both C09 and C12. The largest drop in the number of sold homes was in C14 (Willowdale East and Newtonbrook East). The only MLS district where more sales were recorded this year was C08.

In 2011 (in the period between 1st and 22nd of August) the highest sale price was $3,880,000 (for a residence listed with an asking price of $4,160,000). The highest relation between the selling and asking price (as a percent) was 150%, the lowest - 86%. And the maximum amount of money paid over the asking price was $371,000.

In the same period in 2012, the highest sale price was $6,600,000 (for a home listed at $5,995,000). The highest percentage of theselling to asking price was 120%, the lowest - 87%. The maximum paid over the asking price was a staggering $605,000.

Interestingly, the same number of homes, 63, sold over 1 million in both time periods.

We will look again at these figures in September.

When the media cry wolf, and predict a drop in real estate activity and market 'correction', we typically see two types of reaction from the public. The prospective buyers, unless hard pressed to move, tend to step aside and watch, to see whether the prices might indeed drop. The sellers, on the other hand, if they don't have to sell, tend to postpone their moving plans, worried that they may not be able to sell at the price they anticipated.

There is also a tendency for a 'wait and see' approach among home owners who were planning to 'move-up', either buying a larger home, or moving to a more expensive neighbourhood. When prices drop, they tend to drop more in the upper end of the market, thus making a move to a more expensive residence less costly.

Comparing the first two weeks of August in 2011 and 2012, the following can be observed:

• 33.0% fewer homes were sold
  • 32.5% fewer detached homes
  • 33.8% fewer semi-detached
  • 18.9% fewer attached homes, and
  • 61.9% fewer freehold properties of other types

• 16.6% fewer homes were listed for sale

In the first two weeks of 2011, 40.7% detached homes, 48.2% semi-detached and 33.3% attached homes were sold above asking price. This year, in the first two weeks of August, only 27.6% detached homes, 38.6% semi-detached and 22.7% attached homes received more than the listing price.

Some of that slow-down in real estate activity in Toronto, however, might be caused by the unusually hot and dry summer. Our summers are so short, and this lovely weather is more conducive to relaxing by a lake than shopping for a home. September and October might bring more activity.

Sales of pre-construction condos are one part of the equation, and it has been reported that, while the first quarter of 2012 figures were high (a record number of 6070 new units sold), in the second quarter new unit sales slowed by 21% when compared to the first quarter, and by as much as 50% compared to the same period last year.

Here is a look at the resale results in the City of Toronto (not including the rest of the Greater Toronto Area). Graphs below compare MLS condo sales from 2011 and 2012 for the month of May, and of July.

In May 2011, 1591 condo apartments were sold on MLS in Toronto. Among these were small numbers of bachelor units and larger, 3 and 4-bedroom suites, the majority were 1 bedroom and 2 bedroom apartments. This year May condo sales were marginally higher (by 4 in total), in most sizes, with the exception of bachelor units and 4-bedroom suites.

July results present a different picture. Total condo sales dropped by 22% in comparison to July 2011; 11% fewer bachelor units were sold, 23% fewer one bedroom apartments, 22% fewer two bedroom suites and 12% fewer 3 bedroom condos.

Comparing the period from January to the end of July, 18,002 condos were listed in 2011, 11,778 were sold, and out of these 1,522 were sold over the asking price. In 2012, 21,012 condo apartments were listed in the same period, 11,163 were sold, with 1,269 selling over asking.

In the first quarter of this year the number of new listings increased by 11.7% in comparison to the same period in 2011, but the number of sales dropped by 1.4%. And, as shown in the table above, fewer condos are selling above the asking price. It does seem that condo market in Toronto is cooling. But the differences are not large, and it is possible that the numbers improve in the fall. After all we are experiencing a beautiful summer, and prospective buyers may have put their search on hold while relaxing and enjoying the weather.