GTA home price continued to rise in April, driven by low-rise homes and condominium apartments in Toronto, according to the data released by the Toronto Real Estate Board. The average selling price for April 2013 was $526,335, a 2% increase compared to April 2012. The MLS HPI Composite Benchmark Price was up by 2.9%. full report
Home sales also picked up speed in April. There were 9,811 sales through the TorontoMLS system in April 2013, only 2% below the level reached in the hot market of April 2012. Both new listings during the month and active listings at the end of April were up on a year-over-year basis.
"Despite the headwinds we have experienced in the housing market this year, April sales came in quite strong in comparison to last year," said Toronto Real Estate Board President Ann Hannah.
"It has been almost a year since the federal government enacted stricter mortgage lending guidelines. It is realistic to surmise that some households, who originally put their decision to purchase on hold, are once again looking to buy," continued Ms. Hannah.
In the City of Toronto, the condominium market showed an improved picture in April. Sales of condo apartments were down by only 1.3% compared to April 2012, while average selling price rose by 5.6% year-over-year after a 2% increase in March. By comparison, demand for detached homes in Toronto remained softer than last year, with sales down by 11.8% year-over-year in April.
"The condominium apartment segment in the City of Toronto was a key driver of price growth in April, with both the average selling price and the MLS HPI apartment index up on a year-over-year basis. The improved condo sales picture, with Toronto sales down by only one per cent compared to last year, suggests that interest in condo ownership may be improving," said Jason Mercer, TREB's Senior Manager of Market Analysis.
In the 905 region, the low-rise home market also showed an improved picture in April. Compared to April 2012, sales of detached and semi-detached homes were up by 2.5% and 1.3%, respectively. This was the first year-over-year increase in almost a year. However, condo market remained weaker than last year, with both sales and average selling price down by 7.3% and 5.9%, respectively.
Supply of detached homes has improved in April, especially in the City of Toronto. The Sales-To-New Listings Ratio indicated a balanced market for detached homes in Toronto, York and Peel. This is welcoming news for home buyers who are in the market for detached homes in these areas.
In the Region of Durham and Halton, demand for detached homes remained high. The Sales-To-New Listings Ratio continued to show a Seller’s market for detached homes in these two regions.
The market was also tight for home buyers looking for entry level townhouses and semi-detached homes. The Sales-To-New Listings Ratio indicated a Seller’s market across all regions for both home types.
Market condition for condominium apartments was balanced across the GTA in April, with supply and demand more or less in sync with each other.
Overall, the April data indicates a solid spring housing market in the Greater Toronto Area. The real estate market remains cooler than the first half of 2012 but is in a healthier and more sustainable state. This should benefit both home buyers and sellers looking to buy or sell this year.