Toronto Market Keeps Climbing
This is the Report of the Toronto Real Estate Board released today:
Record Home Sales in April
TORONTO, May 4, 2016 – Toronto Real Estate Board President Mark McLean announced that there were 12,085 sales reported through TREB’s MLS® System in April 2016. This result, which represented a record for the month of April, was up by 7.4 per cent in comparison to April 2015.
For the TREB market area as a whole, annual sales growth was experienced for all major home types except semi-detached houses. In the City of Toronto, sales were down for detached and semi-detached houses as well as townhouses on a year-over-year basis.
This dip in sales in the ‘416’ area code was due to a lack of low-rise listings. Many would-be buyers were not able to find a home that met their needs.
“While April’s sales result represented a new record for sales, that number could have been even higher if we had benefitted from more supply. In the City of Toronto in particular, some households have chosen not to list their home for sale because of the second substantial Land Transfer Tax and associated administration fee.
The lack of available inventory, coupled with record sales, continued to translate into robust annual rates of price growth,” said Mr. McLean.
Home selling prices continued to trend upward in April. The MLS® Home Price Index
Composite Benchmark was up by 12.6 per cent year-over-year. The average selling price was up by 16.2 per cent. The higher growth rate reported for the average home price, as compared to the MLS® HPI, points to a greater share of high-end home sales this year compared to last.
“As we move into the busiest time of the year, in terms of sales volume, strong competition between buyers will continue to push home prices higher. A greater supply of listings would certainly be welcome, but we would need to see a number of consecutive months in which listings growth outpaced sales growth before market conditions become more balanced,” said Jason Mercer, TREB’s Director of Market Analysis.
Pressure is placed on this market. There is a shortage of inventory. New condominium units are pledging to come to the rescue. At the lower end of pricing the demand will be satisfied somewhat. But, that will take some time.
In the meantime, we still have record demand and insufficient product for low rise housing. As an alternative: the 905. Look for prices there to move.
Brian Madigan LL.B., Broker