Second Best March on Record
TORONTO – April 5, 2011
Greater Toronto REALTORS® reported 9,262 transactions through the TorontoMLS®
system in March 2011, representing the second best March result on record. The number of
transactions was 11 per cent lower than the record result reported in March 2010.
“The strong home sales reported in March and throughout the first quarter of 2011 have
been based on a solid affordability picture and improving economic conditions in the GTA
and country-wide,” said Toronto Real Estate Board (TREB) President Bill Johnston.
The average selling price for March 2011 was up five percent year-over-year to $456,147. The strongest average annual price growth was reported for condominium apartments and semi-detached houses, at approximately seven per cent for both home types.
“Market conditions were tighter in March compared to last year. With more competition
between buyers, we have seen a strong but sustainable rate of price growth,” said Jason
Mercer, TREB’s Senior Manager of Market Analysis.
Jonathan’s Opinion
The month of March was very similar to February in that both sales and listings are still down. As the spring market begins, I anticipate that both these numbers will change. I believe the amount of listings will increase in the following months, which will lead to an increase in sales. There are still many Buyers looking for homes, and as the amount of Buyers and Sellers begin balancing out, the average price of a home will remain pretty steady.
Although sales are down, the average price is up. This is a strong indicator of a “topping”
market. Please understand that I do not mean that the market will collapse after March or
April, but I believe it will cool down. Listings and sales will increase (as they always do in the spring), but as supply and demand converge, prices will remain stable (we will not see double digit percent increases as we have this last year and a half).
Houses will still hold their value, but they may take a little longer to sell!
