TORONTO, ONTARIO--(Marketwire - Nov. 5, 2008) - The Greater Toronto Area resale housing market reported 5,155 sales in October, Toronto Real Estate Board President Maureen O'Neill announced today.

This represents a 35 per cent decline from the 7,915 sales reported in October 2007 and a 25 per cent decrease from the 6,876 transactions that took place during the same period two years ago.

In the City of Toronto, there were 2,136 sales, with sales activity down 38 per cent from the 3,455 transactions recorded last October.

In the 905 Region 3,019 sales were recorded, with sales activity down 32 per cent from a year ago when 4,460 homes changed hands.

With 68,570 transactions to date this year, sales are within 16 per cent of the 81,563 transactions noted a year ago. The 2007 market referred to was a record breaking year with each month breaking records for the entire year. Putting into perspective 2008 figures are indicative of a return to a more balanced market.

In the City of Toronto 27,324 sales year-to-date are within 18 per cent of the 33,441 transactions recorded last year at this time.

In the 905 Region the 41,246 sales to date are within 14 per cent of the 48,122 homes that changed hands up to this point a year ago.

In the City of Toronto, the current average price of a home is $376,896, down 13 per cent from last October's average of $434,022 and within three per cent of the October 2006 average of $386,807.

In the 905 Region homes are selling for an average price of $336,049, a decline of eight per cent from October 2007's average of $364,142. Prices in this area however, remain one per cent higher than the October 2006 average of $332,822.

"Earlier this year the International Monetary Fund undertook a study of housing markets in 17 countries and found that Canada was one of only two nations in which house prices are supported by the economy," said Ms. O'Neill. "There's no doubt that real estate will continue to be a solid long-term investment in our country."

There are currently 27,277 homes available for sale on the TorontoMLS system, a 32 per cent increase from a year ago when 20,626 properties were listed. As a result, the amount of time a home remains on the market has increased to 37 days from 30 days a year ago where we were in a supply and demand situation with low levels of inventory and high levels of buyer demand; the good news is sellers are achieving 97 per cent of their asking price, which is within two per cent of the year-ago average.

"At TREB's Annual General Meeting top executives from Canada's largest real estate companies were invited to share their views on the future of real estate in the GTA in a panel discussion, and all agreed that consumer confidence is being unduly affected by media reports on the United States economy," said Ms. O'Neill. "There's no question that in Canada the economic fundamentals to support a healthy housing market remain in place."

Ms. O'Neill went on to note that interest rates remain at historically low levels with numerous mortgage options available. Inflation has stayed in check and employment is strong with more than 9 out of 10 Canadians working and future demand for housing is certain with a quarter of a million immigrants making Canada their new home each year.

The average price of a home in the GTA currently sits at $352,974 compared to $394,646 in 2007.

"Consumer confidence is critical to the housing market and it appears that consumer uncertainty has been prevalent in today's market conditions, said Ms. O'Neill. We are confident levels will return as demand for housing in the GTA continues."

"It's estimated that last year alone, spin-off purchases from house sales contributed $3 billion to the GTA economy and as such, consumer confidence in the housing market is vital to our city's financial outlook," said Ms. O'Neill.

Toronto REALTORS® are passionate about their work. They adhere to a strict code of ethics and share a state-of-the-art Multiple Listing Service. Serving over 28,000 Members in the Greater Toronto Area, the Toronto Real Estate Board is Canada's largest real estate board. Greater Toronto Area open house listings are now available on www.TorontoRealEstateBoard.com.