TORONTO, May 6, 2014 –
Toronto Real
Estate Board President Dianne Usher announced that during April – the first
full month of spring – Greater Toronto REALTORS® reported a 1.8 per cent
year-over-year increase in sales through the TorontoMLS system. Total April
2014 sales amounted to 9,706, compared to 9,535 transactions in April 2013.
“April marked
the beginning of the spring market, during which time we generally see the
highest monthly sales totals in a given year. Despite the persistent shortage
of listings, a substantial number of GTA residents were able to come to terms
on a home that met their needs. However, sales levels would have been higher,
but for the lack of supply,” said Ms. Usher.
“A number of
factors underlie the constrained supply of listings. Studies and polling
suggest that the additional upfront land transfer tax in the City of Toronto
has prompted some households to stay put and renovate rather than list their
home and move. In the broader GTA context, above-trend home sales in the years
leading up to the recession have meant that many households who purchased
during this period simply aren’t ready to move again,” continued Ms. Usher.
The average
selling price for April 2014 sales was $577,898 – up by 10.1 per cent compared
to the April 2013 average of $524,868. The MLS® Home Price Index (HPI)
Composite Benchmark was up by seven per cent year-over-year. The MLS® HPI
strips away price fluctuations resulting from a change in the mix of home types
sold from one period to the next.
“Price
growth for the GTA as a whole was driven by the single-detached, semi-detached
and townhouse market segments in the City of Toronto. So far this year, there
has been no relief on the listings front for these home types in many
neighbourhoods in Toronto and surrounding regions. Until we see a marked and
sustained increase in listings, we should expect to see the annual rate of
price growth above the long-term norm,” said Jason Mercer, the Toronto Real Estate
Board’s Senior Manager of Market Analysis.
Housing Market Indicators
|
|||
April '13
|
April '14
|
% change
|
|
Sales
|
9,535
|
9,706
|
1.8%
|
New Listings
|
18,160
|
17,315
|
-4.5%
|
Active Listings
|
20,866
|
19,118
|
-8.4
|
Days on the Market
|
23
|
20
|
-13%
|
PRICE
|
$524,868
|
$577,898
|
10.1%
|
My Opinion
The housing market is a perfect illustration
of the law of supply and demand. These numbers show that there are still more
Buyers (demand) than Sellers (supply) out there, and therefore, home prices
continue to increase. Demand will always be higher as long as borrowing costs (interest
rates) stay low. Economists are anticipating an increase in interest rates to
be implemented sometime in 2015. They’ve been saying this since 2011…we’ll see
what happens.
