The Toronto GTA housing market has experienced significant equity gains in the 1st Quarter 2012 due to a low supply of inventory coupled with attractively low interet rates which has assisted in a spiking up housing prices.The inventory sits at 20,635 listings as of May 18 2012. This is good news for buyers as it will allow them some choices.However, we still continue with mutiple offers to date in many areas. The following are some valuable quotes of interest.
Toronto Condo Market:
“With sales increasing moderately year-over-year and listings growing strongly, the condo apartment market became better supplied in the first quarter. With more choice for buyers in the condo market segment compared to the low-rise segment, the average selling price for condos grew at a slower pace in comparison to some low-rise types including detached homes,” said Toronto Real Estate Board President Richard Silver.
Toronto Housing Market:
“Interest in single-detached homes has been very high, both in the City of Toronto and surrounding regions. Growth in single-detached listings has not kept up with demand, which means competition between buyers in this market segment increased. With this in mind, it was no surprise that the strongest annual price increase was also experienced in the single-detached segment,” said Toronto Real Estate Board President, Richard Silver.
“Monthly mortgage payments remain affordable for home buyers in the Greater Toronto Area. While interest rates are generally expected to increase over the next two years, the extent and timing of rate hikes has been thrown into question by slower than expected economic growth in the first quarter of this year. On net, borrowing costs are expected to remain a positive factor influencing home sales through 2012,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.