Affordability Indicator by TREB
Another month is over and the Greater Toronto REALTORS® have released their newest housing market figures. According to the report, there were 10,850 sales through the TorontoMLS system in May 2012, which is 11 per cent more compared to May 2011, with only 9,766 transactions. Furthermore, the strongest sales growth was recorded in the 905 regions surrounding the city.
Richard Silver, Toronto Real Estate Board President, said, “Sales growth in the 905 area code was stronger than growth in the City of Toronto across all major home types. While lower average prices are certainly one factor that has contributed to this trend, recent polling also suggests that the City of Toronto’s land transfer tax has also prompted many households to look outside of the City for their ownership housing needs.“
The number of new listings recorded a significant 20 per cent increase on a year-over-year basis, reaching the final number of 19,177 in May 2012.
The average selling price in the GTA was $516,787, representing a 6.5 per cent increase compared to $485,362 in May 2011. In addition, the low-rise market segment continued to push prices upward.
Tight competition in the low-rise homes market resulted in strong price growth in May 2012. Jason Mercer, TREB’s Senior Manager of Market Analysis, pointed out that “if new listings continue to grow at the pace they did in May for the remainder of 2012, the annual rate of price growth should begin to moderate on a sustained basis.“