GTA Market Tightening

Posted on May 9/2011 by

The markets are tightening- which is giving property prices in the GTA a good boost.

According to numbers just released by TREB, there were 9,041 existing home sales in April. This represents a 17 % drop year-over-year from last April’s record breaking 10,898.

On first glance, this might seem a dramatic decline- but it is actually more representative of average April sales results over the last five years.

"Existing home sales have been strong from a historic perspective through the first four months of 2011. Expect the pace of sales to remain robust through the spring, as the economy expands and home buyers continue to benefit from affordable home ownership opportunities," said Toronto Real Estate Board (TREB) President Bill Johnston.

The last year has been characterized by a dramatic shift towards a tightening market. In April 2011, sales comprised 62 % of new listings over the month – a significant rise of 53 %from April 2010.

These squeezing conditions propelled average selling prices for the month up 9% annually to $477,407.

"The number of listings has been below expectations so far this year. Increased competition between home

buyers has led to an accelerating annual rate of price growth," said Jason Mercer, TREB's Senior Manager of Market Analysis. "The strong price growth experienced in April should result in more listings and more balanced market conditions."

The median price in the GTA moved to $402,000, from the $373,000 from last April.

Looking at housing by type, sales numbers for detached homes fell by 16% year-over-year, while prices rose by 9%; semi-detached sales fell by 20%, and prices rose by 8%; sales of townhouses fell by 15%, while their prices rose by 9%; condos sales fell by 18% and prices rose by 8%.

These squeezing conditions propelled average selling prices for the month up 9% annually to $477,407.

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