Average Selling Price Up Strongly in JanuaryFebruary 5, 2014 -- Home ownership in the Greater Toronto Area remains affordable and there are many people looking to purchase a home. In January, the number of homes listed for sale was down quite strongly compared to last year, which means that it was difficult for some buyers to find a home.
Greater Toronto Area REALTORS® reported 4,135 sales through the TorontoMLS system in January 2014. This result was down by 2.2 per cent in comparison to January 2013. New listings entered into the system were down over the same period by 16.6 per cent to 8,822.
“Looking forward, it is possible that strong price growth, and therefore an increase in home equity, will act as a trigger for more households to list their homes for sale. This is especially the case for households whose life styles are changing, including those with an expanding family looking for a larger home or empty nesters looking to downsize,” said Dianne Usher, President, Toronto Real Estate Board.
The average selling price for January 2014 sales was $526,528 – up by more than nine per cent compared to $482,080 in January 2013.
“The pace of price growth will remain strong in 2014. Similar to last year, competition between buyers for singles, semis and town homes in the City of Toronto and surrounding regions will continue to exert upward pressure on selling prices. At the same time, mortgage rates will remain near historic lows, so despite strong price growth, home ownership will remain affordable for the average household in the GTA,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.
| Housing Market Indicators | |||
| Jan '13 | Jan '14 | % change | |
| Sales | 4,229 | 4,135 | -2.20% |
| New Listings | 10,577 | 8,822 | -16.60% |
| Active Listings | 14,231 | 11,903 | -16.40% |
| Days on the Market | 37 | 36 | -3% |
| PRICE | $482,080 | $526,528 | 9% |
My Opinion
Sales are low because listings are low. Not
many houses for sale in January. Notice prices are higher though. This will be
another year of high demand due to the fact that interest rates are set to
remain at historically low levels for at least this whole year. This is enticing
Buyers that would otherwise wait for a “cooling” market to enter now. People’s
beliefs are that if they don’t enter the housing market now, and prices keep
climbing, they will be priced out.
