TORONTO, May 3, 2012 – Greater Toronto REALTORS® reported 10,350 transactions
through the TorontoMLS system in April 2012. This level of sales was 18 per cent
higher than the 8,778 firm deals reported in April 2011. The strongest sales growth
was reported in the single-detached market segment, with transactions of this home
type up by 22 per cent compared to a year ago.
“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.
The average price for April 2012 transactions was $517,556 – up 8.5 per cent
compared to April 2011. While price growth was strongest for single-detached
homes, the better-supplied condominium apartment segment experienced a more
moderate annual rate of price growth, at four per cent.
“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.
Real GDP Growth Q4 2011 t 1.8%
Toronto Employment Growth March 2012 u -0.5%
Toronto Unemployment Rate March 2012 q 8.6%
Inflation (Yr./Yr. CPI Growth) March 2012 u 1.9%
Bank of Canada Overnight Rate April 2012 q 1.0%
Prime Rate April 2012 q 3.0%
Mortgage Rates (Apr. 2012) Chartered Bank Fixed Rates
1 Year q 3.20%
3 Year q 3.95%
5 Year t 5.44%
Source: Toronto Real Estate Board