Monthly Archives: June 2012

GTA Market Report – June 18, 2012

Toronto Home Sales June 2012

Mid-June sales show steady demand

Average home prices in the Toronto area continue to reflect strong demand. The latest figures from TREB show a year-over-year price increase of around 9% for houses, and 5% for condo apartments.

The good news is that new listings have been coming out in greater numbers this season. “Increased listings will result in more balanced market conditions over the next year,” said Jason Mercer, TREB’s Senior Manager of Market Analysis. He pointed out that existing inventories of resale properties are still very low and will take months of continued increase to reach historic narmal levels.

Mortgage rates still low

Discounted five-year rates are still being offered in a range between 3.15% to 3.29%. These historically low rates continue to make Toronto home purchases affordable to many first-time buyers.

If you would like to sell your home in this market, email us, or call James and Joanne at 416-483-8000.

Hope for a balanced market?

Toronto Home Prices May 2012

Toronto home sales figures continue to show growth in both volume and average prices. The average resale home price in May was $516,787. What’s interesting is an emerging pattern that may foreshadow a less hectic pace in the fall.

The number of sales in May was 11% higher than in May 2011; average prices were up 6.5% in the same period. Meanwhile, the number of new listings in May was up 20% over May 2011. If this trend continues on a sustained basis, buyers and sellers can expect a market with a greater supply of homes and less intense competition.

More supply means more buyers

Typically, an increased supply of home listings will draw out more buyers, including those who are reluctant to bid competitively, and those who are attracted by a greater variety of choice. As a result, more supply does not usually imply lower prices. Instead, we can look forward to a more moderate level of growth in prices.

As always, some locations and some types of housing will be in greater demand. Detached homes in the 905 area around Toronto surged in May, with average prices rising 8% over May 2011. Meanwhile, townhouse properties in the City of Toronto were popular, posting a 12% price increase over last May.

If you would like to sell your home in this market, email us, or call James and Joanne at 416-483-8000.