Sales still strong in mid-November
Toronto MLS sales for the first part of November averaged $481,548, about 10% over the same period in 2010. The number of sales was also strong, about 13% higher than in 2010.
Prices for semi-detached homes rose strongest in the 416 area, while detached home prices rose most in the 905 area. Interestingly, these two categories are both in the mid-$500K range, which may suggest a price point that is in great demand.
Affordability and market confidence
“Little or no movement is expected for mortgage rates through 2012. Low rates coupled with the consensus outlook for continued economic growth next year suggests that homes will remain affordable in the GTA and households will remain confident in doing deals,” said Jason Mercer, the Toronto Real Estate Board’s Senior Manager of Market Analysis.
Strong fall season in Toronto
The October MLS stats show a high volume of transactions in October, along with the expected seasonal price levels. 7,642 homes were sold during October, about 17% more than during October 2010.
The average sale price for the GTA in October was $478,137. This result is consistent with the pattern during the year, which projects an increase of 8 to 9% over 2010.
New listings were also up in October, which made it easier for buyers to find a property. “Home buyers who found it difficult to make a deal in the spring and summer due to a shortage of listings have benefitted from increased supply in the fall.” said Toronto Real Estate Board President Richard Silver.
Reduced supply of new building lots
While low interest rates may be the key element in home pricing, economist Will Dunning expects that a reduced availablity of new building lots will be another strong factor in Toronto home prices for the next few years.
In a report prepared for the Residential Construction Council of Ontario, Dunning writes, “Should these circumstances (of constrained land supply and rising government-imposed costs) continue, house prices in the GTA are likely to continue rising rapidly (so long as job creation continues to support housing demand).”
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