Home Prices Continue to Soar in February

The Greater Toronto Area (GTA) REALTORS have come out with the new numbers for February 2013. A  reported 5,759 sales via the TorontoMLS system last month. This is a decline of 15 percent compared to exactly a year ago. Mind you, 2012 was a leap year and with one extra day in February. The 28 day year-over-year sales comparison has made a lesser decline of 10.5 percent

The average sale price for February 2013 was 510,580, which is up two notches in comparison to February 2012.

“The share of sales and dollar volume accounted for by luxury detached homes in the City of Toronto was lower this February compared to last. This contributed to a more modest pace of overall average price growth for the GTA as a whole” noted Toronto Real Estate Board (TREB) President Ann Hannah.

“Stricter mortgage lending guidelines that precluded government backed mortgages on homes sold for over one million dollars and the City of Toronto’s additional upfront land transfer tax arguably played a role in the slower pace of luxury detached home sales,” hinted Ms. Hannah.

The MLS HPI Composite Benchmark was up more than 3 percent compared to last year at this time.

“We will undoubtedly experience some volatility in price growth for some market segments in 2013″ said Jason Mercer, TREB’s Senior Manager of Market Analysis. He continued,  “However, months of inventory in the low-rise market segment will remain low, resulting in average price growth above three per cent for the TREB market area this year. Our current average price forecast is $515,000 for all home types combined in 2013,”

Source: TREB