The Toronto Real Estate Board has announced, Canada’s largest housing market is clearly a sellers’ market.
The GTA had a recorded 11% increase in sales from a year ago, totaling a number of 8,940 properties sold in March. The average price of detached homes in the 416 continues to rise with a 15.9% increase from last year to $1,042,405.
“It is clear that sellers’ market conditions in many parts of the GTA are driving price growth. However, looking at the detached market segment in the City of Toronto in particular, growth in the average selling price outstripped growth in the [board’s index],” said Jason Mercer, TREB’s director of market analysis, in a statement. “This points to the fact that the mix of detached homes sold this year compared to last has shifted towards more expensive properties.”
Toronto’s strength in the housing market comes at a time where the majority of the country is experiencing a decline in sales and prices – except Vancouver, the country’s most expensive market.
As Toronto and Vancouver continue to show strength, the sales volume is likely to put more pressure on the average national price. This month Canada Mortgage and Housing Corp. increased premiums on mortgage default insurance for people with less than a 10% down payment, a move some say was aimed at Canada’s two hottest markets.
Paul Etherington, president of the Toronto board, said “the cost of home ownership remained affordable, with lower interest rates going a long way to mitigate the effect of rising home prices.” On Monday, Toronto-Dominion Bank lowered the rate on its five-year fixed rate mortgage to 2.74% — the lowest ever in that category for a major bank.
“A substantial amount of pent-up demand remains in place, especially as it relates to low-rise market segments. This suggests that strong competition between buyers, which has fuelled strong price growth so far this year, will continue to be experienced throughout the spring,” said Mr. Etherington, in a statement.