Torontonians continued to purchase properties at a fast pace as the calendar turned from 2011 to 2012, according to the latest housing figures released by the Toronto Real Estate Board.
Toronto Real Estate Board reports that there were approximately 4,567 home sales in the GTA in January, which is nearly nine per cent ahead of the 4,200 home sales through the same 31-day period in 2011. Among all the property types, sales were strongest among low-rise units.
Richard Silver, president of TREB, said advantageous mortgage market conditions contributed to house hunters' inclinations to buy.
"A favourable affordability picture bolstered by very low posted fixed mortgage rates has kept home buyers confident in their ability to achieve the Canadian goal of home ownership," said Silver. "The buyer pool remains diverse in the GTA with strong interest in home types across the pricing spectrum."
While home buying activity picked up, so did the average selling price for properties, as the typical transaction price for a home in the GTA was $463,534, up more than nine per cent on a year-over-year basis.
Toronto Real Estate Board's senior manager of market analysis Jason Mercer said higher prices were largely influenced by supply and demand.
"Low inventory levels have kept competition between buyers strong, resulting in robust annual rates of price growth over the last year," said Mercer. "Strong price growth is expected to attract more listings."
He added that with more properties expected to become available, the rate of price growth should weaken, particularly through the last six months of the year.
Toronto wasn't the only area in which average home prices elevated. According to the Canadian Real Estate Association, the aggregate composite MLS Home Price Index throughout the country rose 0.27 per cent on a monthly basis after falling 0.2 per cent in December. Price increases were particularly sharp in Montreal, rising by 0.68 per cent. Toronto recorded the second-highest value increase at 0.28 per cent.
Meanwhile, on a year-over-year basis, the HPI remained 5.2 per cent above January 2011's home prices, once again led by Toronto at 7.6 per cent. In addition, of the other four markets tracked - Montreal, Vancouver, Fraser Valley and Calgary - they too posted yearly increases, particularly among single-family homes that were two-storeys tall.
Despite the higher prices, Gary Morse, president of the CREA, said the rate of increase has abated.
"While home prices remain up compared to one year ago, price growth from one month to the next has been slowing, causing year-over-year gains to shrink, and prices are generally expected to continue to stabilize this year," said Morse. "That said, many parts of the country could continue to see gains, while others may see home prices soften."
Among properties such as townhouse and apartment units, however, values declined for both, dropping by 0.41 per cent for townhouses and row units and 0.20 per cent for apartment complexes.
to view saved quotes
More
Print
