May 2014 Market Watch Released - 1.8 per cent year-over-year increase

TORONTO, May 6, 2014 - Toronto Real Estate Board President Dianne Usher
announced that during April – the first full month of spring – Greater Toronto
REALTORS® reported a 1.8 per cent year-over-year increase in sales through the
TorontoMLS system. Total April 2014 sales amounted to 9,706, compared to 9,535
transactions in April 2013.
“April marked the beginning of the spring market, during which time we generally see
the highest monthly sales totals in a given year. Despite the persistent shortage of
listings, a substantial number of GTA residents were able to come to terms on a home
that met their needs. However, sales levels would have been higher, but for the lack of
supply,” said Ms. Usher.
“A number of factors underlie the constrained supply of listings. Studies and polling
suggest that the additional upfront land transfer tax in the City of Toronto has prompted
some households to stay put and renovate rather than list their home and move. In the
broader GTA context, above-trend home sales in the years leading up to the recession
have meant that many households who purchased during this period simply aren’t ready
to move again,” continued Ms. Usher.
The average selling price for April 2014 sales was $577,898 – up by 10.1 per cent
compared to the April 2013 average of $524,868. The MLS® Home Price Index (HPI)
Composite Benchmark was up by seven per cent year-over-year. The MLS® HPI strips
away price fluctuations resulting from a change in the mix of home types sold from one
period to the next.
“Price growth for the GTA as a whole was driven by the single-detached, semi-detached
and townhouse market segments in the City of Toronto. So far this year, there has
been no relief on the listings front for these home types in many neighbourhoods in
Toronto and surrounding regions. Until we see a marked and sustained increase in
listings, we should expect to see the annual rate of price growth above the long-term
norm,” said Jason Mercer, the Toronto Real Estate Board’s Senior Manager of Market
Analysis.

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Rudy Reznik

Rudy Reznik

Sales Representative
CENTURY 21 Atria Realty Inc., Brokerage*
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