Price Growth Across All Major House Types in May 2013
There is a lot of activity in the real estate market at this time of year and some buyers are having difficulty finding their perfect home due to shortage of supply. While inventory levels are rising they are still below traditional norms.
The demand for housing has buoyed up prices in some areas. Even with the slight decline in sales year-over-year, The Canadian real estate market continues to be the best investment on the long run.
Ontario - Price growth across all major home types in May
Toronto, June 5, 2013 -- Greater Toronto Area (GTA) REALTORS® reported 10,182 sales through the Toronto Multiple Listing Service® (MLS®) system in May 2013, representing a dip of 3.4% compared to May 2012. Sales of single-detached homes in the GTA were up by almost 1.0% compared to the same period last year, including a 3.0% year-over-year increase in the City of Toronto.
“The sales picture in the GTA has improved markedly over the past two months. While the number of transactions in April and May remained below last year’s levels, the rate of decline has been much smaller. A growing number of households who put their decision to purchase on hold as a result of stricter lending guidelines are starting to become active again in the ownership market,” said Toronto Real Estate Board (TREB) President Ann Hannah.
The average selling price for May 2013 sales was $542,174 – up by 5.4% in comparison to $514,567 in May 2012. The annual rate of price growth was driven by the tight low-rise segment of the market and particularly by single-detached and semi-detached home transactions in the City of Toronto. Average condominium apartment prices were also up slightly in comparison to last year.
The MLS® Home Price Index (HPI) Composite Benchmark was up by 2.8% year-over-year.
“The annual rate of price growth in May was not surprising given the competition that still exists between buyers, particularly for low-rise home types such as single-detached and semi-detached houses. We remain on track for a three-and-a-half per cent increase in the average selling price for 2013 as a whole,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.