Sales and prices growth recorded in March

Sunset Sail Ashbridges Bay Toronto Canada by Brian Carson

Both sales and prices have increased comparing to the March statistics last year. Greater Toronto Area Realtors® reported 11 per cent increase in sales, from 8,052 in March 2014 to 8,940 sales this year. Looking closely on sales, they were up for most home types, except semi-detached houses with 3.5 per cent fall. Toronto Real Estate Board President Paul Etherington commented the situation:

"Home sales increased compared to last year as the cost of home ownership remained affordable, with lower interest rates going a long way to mitigate the effect of rising home prices. However, a substantial amount of pent-up demand remains in place, especially as it relates to low-rise market segments. This suggests that strong competition between buyers, which has fuelled strong price growth so far this year, will continue to be experienced throughout the spring."

The MLS® Home Price Index tracks benchmark homes with the same attributes over time periods. The strongest price growth – reaching 15.9 per cent – was recorded for detached homes in the City of Toronto. In the C02 area the strongest growth was recorded for detached homes as well. With 13.97 per cent increase the average prices were as high as $1,422,800.

The prices have increased as a result of market forces – supply vs. demand – and market conditions are getting tighter. In many parts of the Greater Toronto Area are driving price growth. As Jason Mercer, TREB's Director of Market Analysis pointed out:

"Looking at the detached market segment in the City of Toronto in particular, growth in the average selling price outstripped growth in the MLS® HPI. This points to the fact that the mix of detached homes sold this year compared to last has shifted towards more expensive properties."

NM00VK