TREB Reports Best May Ever for Resale Market
By Lucas on Jun 05, 2014
The Toronto Real Estate Board (TREB) is reporting that sales and average prices for the Greater Toronto Area’s (GTA) resale market showed strong increases in May 2014.
There were 11,079 sales reported through the TorontoMLS system last month, making it the best May in recorded history. This is an 11.4 percent increase compared to May 2013’s sales (9,946).
The average selling price saw a year-over-year increase of 8.3 percent, reaching $585,204. May 2013’s average selling price was $540,544.
“We are now at the peak of the spring market when we generally see the greatest number of sales and the highest average selling prices. Based on the May statistics, buyers have been more active this spring compared to last year. Despite strong price growth so far in 2014, many households remain comfortable with the monthly mortgage payments associated with the purchase of a home, as borrowing costs have remained at or near record lows over the past few months,” said TREB President Dianne Usher.
In April 2014, the average price for a detached home in the City of Toronto was $965,670. Even though the number of sales and price average increased in May, the average selling price for a detached home in Toronto decreased to $943,055. The average selling price for a detached home in the surrounding regions was $648,439. With a total of 5,715 sales, this home type was unsurprisingly the hottest in May.
“The listings situation in the GTA did not improve this past May. With listings down and sales up compared to last year, competition between buyers increased. The result was price growth well-above the rate of inflation, especially for singles, semis and townhomes,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.
With 2,234 sales, condo units were the second most popular home type, with over 1,500 of the sales in Toronto. The average selling price for a resale condo unit in Toronto was $401,809, a 7.6% increase compared to the same period last year. The average for the surrounding regions was $307,307. With these average selling prices, condos proved to be the most affordable home type in the GTA.
