The housing market in Toronto and surrounding 905 areas continued the same trend in March as what had been seen since last summer. Home sales were down on the year-over-year basis, while average home price continued to rise but at a slower pace. full report
According to the Toronto Real Estate Board (TREB), there were 7,765 homes sold through the TorontoMLS system in March 2013, down 17 per cent compared to 9,385 transactions in March 2012. Sales declined across all regions and most home types.
The average home price in March 2013 was $519,879, up 3.8% compared to March 2012. The MLS® Home Price Index Composite Benchmark was up 2.9% on a year-over-year basis. The average selling prices increased across all regions and most home types. Price increases in townhouses, semi-detached and detached homes continued to outpace that of condominium apartments.
On a quarterly basis, sales amounted to 17,678 in the first quarter of 2013, down by 14% compared to Q1 2012. The average price in Q1 2013 was $508,066, up by 3.2% compared to the first quarter of 2012. Average selling prices for low-rise homes were higher in all regions, while condo prices increased only in the Region of Peel, Durham, and Halton but declined in the City of Toronto and Region of York.
Supply of low-rise homes remains an issue for home buyers. Sales-To-New Listings Ratio for low-rise homes was 0.60 in March 2013, suggesting a tight market condition for low-rise housing market. For condo apartments, the ratio was 0.53, indicating a more balanced and better supplied market in condominium apartments.
"While some households have put their decision to purchase on hold as a result of stricter lending guidelines or the additional Land Transfer Tax in the City of Toronto, other households simply haven’t been able to find the right house due to a shortage of listings in some market segments," said Toronto Real Estate Board President Ann Hannah.
"TREB's average price forecast for 2013 remains at $515,000, representing a 3.5 per cent annual rate of growth," said Jason Mercer, TREB's Senior Manager of Market Analysis.