An unexpected but positive start to 2013 has Realtors and Buyers in the GTA anticipating competition in the marketplace to advance continued growth in home prices. Greater Toronto Area REALTORS reported 4,375 Residential Sale transactions through the TorontoMLS System in January 2013. While the number of transactions was slightly lower compared to last year, the rate of decline was only 1.3 percent less than the 4,432 reported sales in January 2012 and more promising than the 16 percent decline in the same period of December 2011. According to the Toronto Real Estate Board (TREB) President “this suggests that some buyers, who put their decision to purchase on hold last year due to stricter mortgage lending guidelines, are once again becoming active in the market”.
The average selling price increased in January 2013 compared to January 2012. The average sale price came in at $482,648, a 4.3 percent increase from the average sale price achieved in 2012. It is important to recognize that these results are based on an average year-over-year summary and a closer look at the overall market place in January show the results indicated are not consistent. For example, in the 416 districts of Toronto, detached home sales declined by 7.6 percent, semi-detached homes dropped 5.2 percent, Townhouse sales by 11.2 percent and Condo Apartments by 4.5 percent. In the 905 district of Toronto, detached home sales increased by 3.7 percent, semi-detached by 0.9 percent, townhouse sales by 1 percent and Condo Apartments had a decrease of 4.5 percent. There is no doubt that the cost of living in the 905 district has its financial advantages. As the price of a detached home is 35 percent less than a detached house in the 416 districts.
According to TREB’s market analysis of the GTA all home types, the top three at highest average sale price remain the same as the 2012 analysis. Oakville maintained the highest average sale price at $713,180 a slight increase in price from 2012’s $710,141. Richmond Hill followed at $683,102 with an increase of over 20 thousand dollars. While Vaughan came to a high of $626,865 in comparison to last year’s $593,581.
These results demonstrate that there is a strong buyer demand, as January’s results show both the positive and negative aspects of the Toronto Market Place.