Spring Market Accelerates and Prices Increase in May 2014

Toronto Skyline by Graham

Last winter was both very long and very cold, delaying the spring's market acceleration. However, both buyers and sellers have entered the market, which has really taken off. Overall sales and the average selling price recorded through the TorontoMLS system grew strongly compared to May 2013.

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 Toronto Real Estate Board President Dianne Usher.

City of Toronto Sales

The City of Toronto's total sales grew up 5.96 per cent compared to May 2013, reaching 4,069 sales last month.

All of the housing types rose, as follows. Detached houses sales marked a 5.15 per cent rise compared to May 2013, with 1,551 units sold. Semi-detached houses and condos sales rose by 8.29 and 4.4 per cent, respectively. The most significant increase was recorded in the townhouse segment, which was 15.42 per cent higher compared to last year.

Greater Toronto Area Sales

Overall sales in the GTA last month increased 11.4 per cent compared to May 2013's 9,946 sales. Sales climbed up to 11,079 last month — a new high for May.

Greater Toronto Area Prices

The average selling price rose as well, from last year's $540,544 to $585,204 last month.

Toronto Central: C02 Area

The May real estate market saw 167 new listings, raising the number of all active listings in the C02 area to 265. The total sales in the C02 area reached 83 units, which is only six fewer than the April number. The average price in this area rose to $1,143,679 compared to April's $1,093,809 average price per unit.

As a realtor, I can see that the market has accelerated and I'm anticipating that this acceleration will extend well into late June, and possibly even into July.

Jason Mercer, TREB's senior manager of market analysis, noted that the GTA listings situation didn't improve last month. Competition between buyers increased due to sales being up and listings being down from last year, resulting in higher prices — especially for singles, semis, and townhomes.

It is also important to point out that even though the condo apartment market segment remains comparatively well-supplied, as new project completions have generally led to an uptick in listings, we have seen enough buyer interest to prompt strong condo price growth as well,

Mercer commented.

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