The Toronto Market Reaches New Highs in February 2014
Let's have a look at the recent report from the Toronto Real Estate Board:
TorontoMLS Sales Up in February TORONTO, March 5, 2014 –
Toronto Real Estate Board President Dianne Usher announced that February 2014 home sales reported by Greater Toronto Area REALTORS® were up by 2.1 per cent compared to the same period last year.
Total February sales amounted to 5,731 compared to 5,613 last year. “Despite the continuation of inclement weather in February, we did see a moderate uptick in sales activity last month. The sales increase was largely driven by resale condominium apartments.
New listings of resale condominium apartments were up on a year-over-year basis, giving buyers ample choice. This is in contrast to the listings situation for singles, semis and townhomes, where supply continued to be constrained. Some would-be buyers had difficulty finding a home that met their needs,” said Ms. Usher.
“If we see renewed growth in listings for low-rise home types, the pace of sales growth will accelerate as we move through the year,” Ms. Usher continued.
The average selling price for February 2014 sales was up by 8.6 per cent to $553,193, compared to the average of $509,396 reported for February 2013.
The MLS® Home Price Index (HPI) Composite Benchmark was up by 7.3 per cent year-over-year.
“While the strong price growth experienced over the last year should prompt an improvement in the supply of listings, sellers’ market conditions will continue to prevail this year. Home prices, on average, will trend upwards at a pace well-above the rate of inflation. The impact of strong price growth on affordability will be mitigated by low borrowing costs,”
said Jason Mercer, TREB’s Senior Manager of Market Analysis.
So, what does all that mean? The real surge in sales numbers took place in the resale condo sector. There’s a good supply and a good market. That’s where the activity is.
Low rise houses of all types are in short supply. They’re not selling because they’re not available. This will push up those prices as they return to the market.
December 3,690 $478,739
January 4,229 $482,080
February 5,613 $509,396
March 7,538 $517,223
April 9,535 $524,868
May 9,946 $540,544
June 8,822 $529,616
July 8,367 $512,286
August 7,392 $501,739
September 7,258 $532,631
October 7,948 $539,448
November 6,359 $539,084
December 4,064 $520,245
January 4,119 $526,508
February 5,731 $553,193
You will notice that the market is now at new highs. The new average price through the previous high of $540,544 in May 2013. While it may indeed be expected to have an increase year over year, this is an indication of a rather early surge in prices.
The height of the market is usually sometime in May each year. Let’s see what happens with the Spring market!
Brian Madigan LL.B., Broker