Recently, the Toronto Real Estate Board (TREB) released its resale market results for April 2014, highlighting some expected and unexpected findings (the average detached resale price falls under both categories).
For April 2014, GTA REALTORS reported 9,706 sales through the TorontoMLS system. This is a 1.8% increase compared to the 9,535 transactions in April 2013.
“April marked the beginning of the spring market, during which time we generally see the highest monthly sales totals in a given year. Despite the persistent shortage of listings, a substantial number of GTA residents were able to come to terms on a home that met their needs. However, sales levels would have been higher, but for the lack of supply,” said TREB President Dianne Usher.
“A number of factors underlie the constrained supply of listings. Studies and polling suggest that the additional upfront land transfer tax in the City of Toronto has prompted some households to stay put and renovate rather than list their home and move. In the broader GTA context, above-trend home sales in the years leading up to the recession have meant that many households who purchased during this period simply aren’t ready to move again,” Usher added.
The average resale selling price in the GTA
In April 2014, the average selling price for a resale home in the GTA was $577,898, which is a 10.1% increase compared to April 2013’s average price of $524,868. The MLS Home Price Index (HPI) Composite Benchmark increased 7%.
“Price growth for the GTA as a whole was driven by the single-detached, semi-detached and townhouse market segments in the City of Toronto. So far this year, there has been no relief on the listings front for these home types in many neighbourhoods in Toronto and surrounding regions. Until we see a marked and sustained increase in listings, we should expect to see the annual rate of price growth above the long-term norm,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.
Most popular resale home types in the GTA
Surprise, surprise - detached homes are still the hottest home type in the GTA’s resale market. In April, there was a total of 4,878 detached homes transactions. Most of them sold in the 905 region, while only 1,296 sold in the 416 area. The average price for a detached home in April was $730,328, but the average price in the 416 area was a whopping $965,670!
Condo units were the second most popular with a total of 2,123 sales in April. Most of the units were sold in the 416, and only 618 condo units sold in the 905. The average selling price for a resale condo in the GTA in April was $358,944.