As temperatures continue to rise in our nation’s largest metropolis, Toronto, so too are the average resale house prices. Market analysts are beside themselves examining the numbers from the month of April, with new record highs in prices compared to a year ago.
According to The Financial Post, reporting on the recent statistics released by the Toronto Real Estate Board, Toronto home sales rose 17% in April year-over-year, a new record. Which is made even more impressive considering that, historically, April is one of the hottest months to buy homes in the GTA, with May being the historical yearly peak for prices and sales. The board reported 11,303 sales in April, with the average selling price of homes up 10% to $635,932. In addition, new listings only rose 5% compared to April of last year, which is still substantial, but seems less impressive by comparison with price growth.
Tamsin McMahon of The Globe and Mail offers a breakdown of the price increases for different home categories.
- The average resale price of a detached home reached $1,056,114, a 9.4% increase from last year.
- The average resale price of a semi-detached home reached $574,605, a 15% increase from last year.
- The average resale price of a townhouses reached $474,143, a 20% increase from last year.
- The average resale price of a condo reached $407,612, a 5.8% increase from last year.
Needless to say, the market is looking healthy in Toronto. Jason Mercer, TREB’s director of market analysis, was even quoted as saying that the demand for homes far outpaced supply in April, a circumstance that is not likely to change this year.
The overwhelming demand for homes in Toronto is particularly beneficial to the condominium market, where Toronto has, up until recently, suffered from a crisis of over-construction and development, with many unsold units sitting idle. The number of unsold condo units under development fell 10% from a year ago, according to Urbanation, to 17,488 units. Considering that 21,000 newly built units were introduced into the market last year, that’s approximately a 20% drop in unsold inventory.
What does this scenario mean for buyers and sellers looking to enter the Toronto real estate market? Carolyn Ireland, one of the better real estate market analysts and commentators employed by The Globe and Mail, argues that the lack of listings and the mania of competition, atleast for buyers, “have many looking for overlooked properties or less-travelled neighbourhoods.” While homeowners looking to sell are become more market-aware, researching the average selling price of homes in their neighbourhood and community in order to determine what the best initial ask price might resemble. And real estate agents? Ireland believes many are perplexed at the overall lack of bidding wars, considering the number of homes being sold. And of course, Realtors in the GTA are expecting the red hot market to continue long into the summer.