Prices still rising
The new year in Toronto started off much like last year ended - with lousy weather and an active real estate market. Despite the winter storms, buyers continued to turn out and bump prices higher than at this time last year. Detached home prices in the GTA are up by 12.5 per cent to more than $685,000. Semi-detached homes are up by 11.8 per cent to just under $500,000 and condo prices have increased an average of 6 per cent to about $344,000. Detached homes in the City of Toronto's most popular communities are in demand and often produce multiple offers. "The average selling price will be up again in 2014 and by more than rate of inflation. The sellers' market conditions that drove price growth in the second half of 2013 will remain in place in many parts of the GTA " says Toronto Real Estate Board (TREB) analyst Jason Mercer. "Some neighbourhoods, especially those characterized by low-rise home types like singles, semis and townhomes, will continue to have less than two months of inventory". In the GTA , homes are on the market for an average of 33 days and sell for 97 per cent of the listed price. On average, communities have 2.5 months of inventory. A lack of listings has pushed real estate prices higher. One theory contends that the controversial Toronto land transfer tax encourages buyers to renovate their current homes rather than sell their home and move to a larger house. The final numbers are in 2013, showing that sales last year were up by two per cent compared to 2012. Most analysts believe that sales this year will edge higher during the year, but rising mortgage interest rates toward the end of 2014 may slow the market down. The economic fundamentals that have driven the Toronto housing market for more than decade are still in place: interest rates are still near historic lows, employment is stable and the city's population continues to grow. Immigration will continue to fuel the housing market and it's expected that this year fewer people will leave the GTA to work out west.
CENTURY 21 Miller Real Estate Ltd.
467 Speers Road,
Oakville, ON L6K 3S4