Toronto Real Estate Prices Dropped In January 2015

According to the Toronto Real Estate Boards President, Paul Etherington, Toronto’s Condominium Apartment sales for the months of October to December, 2014 had seen an increase of 8.3 per cent, compared to 2013. As  the supply of Condominium Apartment units listed for sale increased, so did the number of sales. According to Jason Mercer, the Toronto Real Estate Boards Director of Market Analysis “Despite very strong condominium apartment completions over the last two years, we have not experienced a glut in inventory.” Furthermore, the Toronto Real Estate Board announced that during the first 14 days of January, 2015 there were 1,409 sales reported through the TorontoMLS system, resulting in an increase of 9.8 per cent compared to the same time in 2014. 

Although there has been an increase in the number of homes sold in 2015, it is important to note that the average selling price for mid-month transactions in January has decreased compared to last year. Mercer states that “the slight dip in the average selling price reflects the fact that we saw a different mix of homes sold this year compared to last year during the first two weeks of January, as evidenced by a lower average listing price.” In 2015, the average sale price of a home in the GTA was $510,532.00, compared to the GTA’s average sale price of $516,620.00 in 2014, a drop of 1%. However, Mercer states that “the month-end MLS® HPI Composite Benchmark price and the average selling price will provide a clearer view on prices,” so it is yet to be seen what the outcome for the first quarter of 2015 will be. 

 

Mid-month resale market figures graph

Strong Average Price Growth in September in Toronto Real Estate

Greater Toronto Area (GTA) REALTORS® reported 5,879 transactions through the TorontoMLS system in September 2012. The average selling price for these transactions was $503,662, representing an increase of more than 8.5 per cent compared to last year.

The number of transactions was down by 21 per cent in comparison to September 2011. However, it is important to note that there were two fewer working days in September 2012 compared to September 2011. The majority of transactions are entered on working days. On a per working day basis, sales were down by 12.5 per cent year-over-year.

“While sales have been lower due to stricter mortgage lending guidelines, we continue to see substantial competition between buyers. The months of inventory trend remains low from a historic perspective, which explains the strong price increases we are experiencing,” said Toronto Real Estate Board (TREB) President Ann Hannah.

September average selling prices were up compared to last year for all major home types. Price growth was strongest in the City of Toronto, including for condominium apartments with eight per cent year-over-year growth. All benchmark home types included in the MLS® Home Price Index (MLS® HPI) experienced year-over-year price increases, with substantially stronger increases for low-rise home types.

“Barring a major change to the consensus economic outlook, home price growth is expected to continue through 2013. Based on inventory levels, price growth will be strongest for low-rise home types, including single-detached and semi-detached houses and town homes,” said TREB’s Senior Manager of Market Analysis, Jason Mercer.

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