January Market Watch Report

Strong Sales/Price Growth Continue in 2012

TORONTO, February 8, 2012 —

Greater Toronto REALTORS® reported 4,567 sales through the TorontoMLS® system in January 2012. This number was 8.8 per cent higher than the 4,199 sales reported in January 2011. Sales growth was strongest for low-rise home types in the regions surrounding the City of Toronto.

“A favourable affordability picture bolstered by very low posted fixed mortgage rates has kept home buyers confident in their ability to achieve the Canadian goal of home ownership,” said Toronto Real Estate Board President Richard Silver.

“The buyer pool remains diverse in the GTA with strong interest in home types across the pricing spectrum,” continued Silver. The average selling price for January 2012 transactions was $463,534 – up by almost nine per cent compared to January 2011.

“Low inventory levels have kept competition between buyers strong, resulting in robust annual rates of price growth over the last year. Strong price growth is expected to attract more listings. A better supplied market should result in a slower rate of price growth, especially in the second half of 2012,” said Jason Mercer, the Toronto Real Estate Board’s Senior Manager of Market Analysis.


Jonathan’s Opinion

As you can see by the statistics here, the market continues being a Seller’s market, in that; houses are selling fast and for top dollar. However, you can also view this as a market favourable to Buyers because of the low interest rates that lead to affordable monthly mortgage payments.

Low interest rates and lack of supply will keep this type of market going. There will not be a change in the real estate market activity until there is a change in the monetary policy.

If interest rates remain low (which I believe they will throughout 2012), the housing market will continue being robust, and prices will continue increasing.