The Toronto real estate market continues to climb as total home sales in the Toronto area reached 10,350 in April 2012, an 18% increase from 8,778 total sales in April 2011. The average sale price for those listings came in at a staggering $517,556, which is 8.5% higher than the April 2011 average sale price of $476,802. The number of new listings posted in the Toronto area also increased from 14,335 in April 2011 to 16,436 in 2012, an increase of almost 15%. The average DOM (days on market) came down one day from 22 days to 21 days in April 2012. Perhaps the most interesting statistic was the increase in price for detached homes compared to semi-detached, townhouses and condominiums. The average selling price of detached homes in the 416 area code increased by 9% while semi-detached homes and condos increased by 3% and townhouses by 1%.
Fueling the increases of the Toronto real estate market are the low interest rates from mortgage lenders as well as the overwhelming demand from Toronto home buyers. Detached homes in particular seem to be in highest demand and also have the lowest inventory. One could speculate that the increase in demand for detached homes is a result of the low mortgage rates which in return, results in low monthly mortgage payments. Buyers who could previously only afford semi-detached homes or townhouses, can now afford detached homes due to the low mortgage rates.
With mortgage rates expected to rise over the next couple years, some home buyers remain cautious, while others may be spending more than they would be able to afford if the interest rates do increase. One thing to note is that the Canadian economy had slower than expected growth over the first quarter of 2012, which could result in the Bank of Canada holding the rates at these low levels for even longer than expected.
April 2012 vs. April 2011:
Toronto Home Sales:
- April 2012: 10,350
- April 2011: 8,778
New Listings In Toronto:
- April 2012: 16,436
- April 2011: 14,335
Toronto Average Sale Price:
- April 2012: $517,556
- April 2011: $476,802
Days On Market:
- April 2012: 21
- April 2011: 22