If the month of May was any indication, Toronto’s Real Estate market is in for a hot summer.
Total home sales through the Toronto MLS system hit 11,079 in May, an increase of 1,133 over the same period during the previous year. It wasn’t just the number of sales that saw a sharp increase though, as average sale prices also climbed to $585, 204 in May, representing an 8.3% uptick compared to 2013.
As one of Real Estate’s busiest seasons reaches it’s peak, these numbers don’t come as much of a surprise to industry experts.
“We are now at the peak of the spring market when we generally see the greatest number of sales and the highest average selling prices. Based on the May statistics, buyers have been more active this spring compared to last year. Despite strong price growth so far in 2014, many households remain comfortable with the monthly mortgage payments associated with the purchase of a home, as borrowing costs have remained at or near record lows over the past few months,” said TREB President Dianne Usher.
New listings were still hard to come by, prompting the continued competition for homes in the GTA and the growth of average sale prices once again. Traditionally, the Spring market sees some of the most movement, while the summer experiences a bit of a slowdown before picking up once again in September.
“The listings situation in the GTA did not improve this past May. With listings down and sales up compared to last year, competition between buyers increased. The result was price growth well-above the rate of inflation, especially for singles, semis and townhomes,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.
“It is also important to point out that even though the condo apartment market segment remains comparatively well-supplied, as new project completions have generally led to an uptick in listings, we have seen enough buyer interest to prompt strong condo price growth as well,” continued Mercer.