TORONTO, March 5, 2012 Greater Toronto REALTORS reported 7, 032 sales in Feburary 2012 - up 16 per cent compared to Feburary 2011. New listings were also up over the same period, but by a lesser 11 per cent to 12,684. It is important to note that 2012 is a leap year, with one more day in Feburary. Over the first 28 days of Feburary, sales and new listings were up by ten per cent and six per cent respectively.
"With slightly more than two months of inventory in the Toronto Real Estate Board (TREB) market area, on average, it is not surprising that competition between buyers has exerted very strong upward pressure on the average selling price. Price growth will continue to be very strong until the market becomes better supplied," said Toronto Real Estated Board President Richard Silver.
"It is important to note that both buyers and sellers are aware of current market conditions. This is evidenced by the fact that homes sold, on average price, was up by 7.3 per cent compared Feburary 2011.
The average selling price in the TREB market area was $502,508 in Feburary - up 11 per cent compared to Feburary 2011. The composite MLS Home Price Index for TREB, which provides a less volatile measure of price growth compared to the average price, was up by 7.3 per cent compared Feburary 2011.
"If tight market conditions continue to result in higher than expected price growth as we move into the spring, expectations for 2012 as a whole will have to be revised upwards," said Jason Mercer, TREB's Senior Manager of Market Analysis. "While price growth remains strong, the average selling price remains affordable from a mortgage lending perspective for a household earning the average income in the GTA."
Source: Toronto MLS Market Watch