Resale Prices in GTA Continue to Climb!
By Lucas on May 21, 2014
Recently, the Toronto Real Estate Board (TREB) released its sales figures for the first two weeks of May 2014, announcing that sales in the Greater Toronto Area (GTA) continue to climb, while new listings continue to decrease.
GTA resale transactions
“Sales reported by Greater Toronto REALTORS® were up strongly during the first two weeks of May in comparison to the same time last year. However, new listings were down slightly over the same period, which means competition between buyers continued to increase and price growth remained very strong,” explains TREB President Dianne Usher. It looks like we’ll continue to see outrageous bidding wars in the GTA’s resale market.
5,185 sales were reported through the TorontoMLS system in the first two weeks of May, which is a 19.6% increase compared to May 2013. There were 3,255 sales in the 905 region, and 1,930 sales in the 416.
The highest selling home type was detached, of course, with 2,660 sales. With just 738 sales in the 416, the average selling price reached an incredible $966,867! Will the average price for a detached home in the 416 eventually reach over $1 million?
Condo units were the second most popular home type with 1,049 sales during the first half of May. The average selling price for a resale condo in the 416 was $398,823, and $303,703 in the 905.
“While tight market conditions continue to prompt strong year-over-year increases in the average selling price, it is important to point out that the monthly cost of home ownership – mortgage principal and interest, property taxes and utilities – has not trended upward as strongly. Strong price growth has been mitigated to a large degree by low borrowing costs,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.
The average selling price for a resale home in the GTA for the first two weeks of May 2014 was $590,132, which is 8.9% higher than the average price from the same period last year ($542,074).
With prices increasing so rapidly in the resale market and bidding wars plaguing the GTA’s most prized neighbourhoods, the new home market is looking more and more attractive.
