Greater Toronto REALTORS® reported 4,718 transactions through the TorontoMLS® system in December 2011. full report
The average selling price in December was $451,436 – up 4% compared to December 2010. For all of 2011, the average home price was $465,412, an increase of 8% in comparison to the average home price of $431,276 in 2010.
On a monthly basis, average home price in December was 6% lower than the average of $480,421 in November. However, the price drop in December was probably more an opportunity for buyers than an indication of rapid market decline.
Market conditions remained tight in December. Sales-to-New Listings Ratio was elevated to 0.98 in December, well above the 0.60 mark which is generally considered a starting point of a seller’s market. Months of Inventory (MOI) also remained below pre-recession average at 2.2 months (meaning it would have taken, on average, 2.2 month to sell all actively listed homes). Finally, Average Days on Market was 32 days, down from 37 days in December 2010.
Given the tight market conditions, competition among buyers can be expected to continue in the coming months, thus putting upward pressure on selling prices.
The Toronto Real Estate Board’s (TREB’s) baseline forecast for 2012 is for an average price of $485,000, representing a 4% annual rate of price growth.