The single family market continues to lead the housing growth in both sales activity and pricing, and the condominium market appears to have turned the corner as well. Overall, the Canadian real estate market continues to move in the right direction, with all indicators pointing towards stable growth and a move towards typical levels of activity.
Some areas, such as Toronto, are reporting feverish real estate activity involving multiple offers and unconditional offers, while others such as Edmonton remain calm, orderly and slowly evolving.
April is the start of the real estate season when people who want to buy and sell real estate are most active. There is speculation that mortgage rates will start to rise which makes it more difficult for first time buyers. However, there is an abundance of choice in the market with new properties coming available daily.
Ontario – Tight market drives double-digit price growth
Toronto, April 4, 2012 – Greater Toronto REALTORS® reported 9,690 sales through the Toronto Multiple Listing Service® (MLS®) system in March 2012. This result was up by almost 8% in comparison to the 8,986 deals reported during the same period in 2011.
“The GTA resale market has not suffered from a lack of willing buyers this year. Buyers have been spurred on by the positive affordability picture brought about by low mortgage rates,” said Toronto Real Estate Board President Richard Silver.
“The challenge has been a lack of inventory. Many listings have attracted multiple interested buyers. Strong competition has led to annual rates of price growth well above the long-term average.” The average selling price in the GTA was $501,614 in March – up by 10% in comparison to March 2011.
“The number of new listings was up last month in comparison to March 2011. However, based on the historic relationship between price and listings, the GTA resale market should be better supplied. If competition between buyers remains as strong as it is right now, we will almost certainly see an average selling price above $500,000 for 2012 as a whole,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.