Toronto real estate keeps moving up
Greater Toronto REALTORS® reported 4,138 sales during the first two weeks of March 2011 – a 5% decrease compared to the first two weeks of March 2010. The number of new listings also dipped – down by 15% compared to the same period last year.
Comment: With January and February both 13% lower in volume than 2010, it would seem that sales have risen 8%. While not a downswing, just a respite from the frenetic pace of the real estate market we have seen previously, it would appear that we are heading up again. And with May being the traditional peak for volume and price, I think we are going to see values higher than the records set last year. And if listings continue to drop, it is going to do nothing but put further upward pressure on prices. Barring a significant bump in interest rates (which is highly unlikely), there is nothing out there with the power to put the brakes on.
“A positive economic outlook for the Greater Toronto Area, including steady growth in jobs and incomes, has kept households confident in their ability to purchase and pay for a home over the long term,” said Toronto Real Estate Board (TREB) President Bill Johnston.
The average price for transactions during the first 14 days of March was $460,196, representing a 4.6% increase compared to the first two weeks of March 2010.
Comment: And that is for the GTA as a whole. The city of Toronto, the 416, has broken $500k. It was not that long ago when the average hit $400k and people made a fuss. When are we going to see an average of $600,000?
“Market conditions are tighter compared to this time last year, resulting in more competition between buyers and sustained upward pressure on the average selling price. The annual rate of price growth is expected to range between 3% and 5% in 2011,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.
Comment: My forecast is that we see an actual price increase of 5–8% by the end of the year.
Summary Of March Sales And Average Price
City of Toronto (“416″)
2011 Sales: 1,618 | Average Price: $512,179
2010 Sales: 1,726 | Average Price: $491,680
Rest of GTA (“905″)
2011 Sales: 2,520 | Average Price: $426,820
2010 Sales: 2,627 | Average Price: $406,298
2011 Sales: 4,138 | Average Price: $460,196
2010 Sales: 4,353 | Average Price: $440,153
Contact the Jeffrey Team for more information – 416−388−1960
Laurin & Natalie Jeffrey are Toronto Realtors with Century 21 Regal Realty.
They did not write these articles, they just reproduce them here for people
who are interested in Toronto real estate. They do not work for any builders.
- Real estate sales still higher than average While not representing a record, February 2011 sales were 50%…
- Toronto real estate sales down, prices up The outlook for mortgage rates and income growth over the…
- January Real Estate Slight Drop January 2010 was a record setting month. It is not…
- Toronto real estate market balacing out The share of average household income going toward a mortgage…
- Toronto real estate sales still up on the year Toronto REALTORS® reported 3,076 sales during the first two weeks…