Monday, April 9, 2012

Toronto real estate: Steady Price Growth

A monthly resale Toronto  housing market report released Wednesday by the Toronto Real Estate Board shows the GTA’s sales and housing prices are on the rise.
According to the report, there were 9,690 sales last March, up 8% from the same month in 2011.
Also, the average selling price in the GTA was $504,117, a 10.5% increase.
“We’ve seen steady price growth because that price growth has been mitigated by and large by low interest rates,” said TREB senior manager of market analysis, Jason Mercer. “That’s why we’re continuing to see strong demand.”
Mr. Mercer said that the big story in the first quarter of this year has been the growing “mismatch” between supply and demand.
“Sales were very, very strong based on the affordability picture whereas on the listing side we were constrained and that led to increased competition between buyers and the strong price growth we’re experiencing now.”
However, Mr. Mercer said that with a commitment to low interest rates from the Bank of Canada over the next year, it is expected that prices will remain over $500,000 for some time.
“Based on that I expect to see strong sales continue through 2012,” he said. “The issue and challenge is more on the supply side.”

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