TORONTO MARKET REMAINS IMMUNE TO WINTER BLUES
Even though the weather outside was frightful, Toronto’s residential Real Estate market remained red-hot throughout the holiday season. TREB reported 4,078 transactions in the month of December, a 14% increase over the same period during the previous year.
Despite a slow start in 2013, the Toronto market saw an overall increase of 2% in transactions compared to 2012, reporting 87, 111 sales. That increase in activity is expected to continue into the New Year, as conditions will remain favourable in the foreseeable future.
“The average selling price will be up again in 2014 and by more than the rate of inflation. The seller’s market conditions that drove price growth in the second half of 2013 will remain in place in many parts of the GTA. Some neighbourhoods, especially those characterized by low-rise home types like singles, semis and townhomes, will continue to have less than two months of inventory,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.
The second-half of 2013 was characterized by the high average-price of sales as much by the sheer volume of transactions. The month of December saw an increase of 8.9% over that month in 2012, rising from $477, 756 to $520,398, due in part to the renewed confidence of buyers and the shortage of inventory, a trend that could very well continue into 2014.
“After a slow start to the year, sales growth accelerated to a brisk pace in the second half of 2013. Despite the inclement weather in December, we finished the year with a respectable gain in transactions compared to 2012. Looking forward, I believe that home ownership in the GTA will remain affordable as borrowing costs stay low. The result could be a further increase in sales in 2014,” said Toronto Real Estate Board President Dianne Usher.