| Market Watch April 2015 – Demand Continued to Rise Across all Housing Market in March | |
We are seeing strong competition among homebuyers today. This is leading to more multiple offer situations and some upward pressure on home prices. This seller market conditions are driving prices upwards in many areas around the country especially for the low-rise market segments. Ontario - Sales and price up year-over-year in March 2015 Toronto, April 7, 2015 -- Toronto Real Estate Board (TREB) President Paul Etherington announced that Greater Toronto Area REALTORS® reported 8,940 sales in March 2015. This result represented an 11% increase compared to March 2014. Sales were up for most major home types, both in the City of Toronto and the surrounding regions. New listings were also up, but by a lesser 5.5%, indicating tighter market conditions. “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,” said Mr. Etherington. In March, the average selling price for all reported transactions was $613,933 – up 10% year-over-year. The MLS® HPI Composite Index, which tracks benchmark homes with the same attributes from one period to the next, was up by 7.9%. Average price growth was strongest for detached homes in the City of Toronto, at 15.9%. Over the same period the detached Multiple Listing Service® (MLS®) HPI in the '416' area code increased 7.8%. The MLS® HPI provides a clear indication of price growth due to market forces - the relationship between demand and supply. Comparing MLS® HPI growth to average price growth provides a sense of the changing mix of home types sold from one period to the next. |