April showers — and snow — didn’t dampen the GTA housing market one bit. According to the latest numbers from the Toronto Real Estate Board (TREB), the 4,541 sales counted for the first half of the month represented at 10.8 per cent jump in activity from the same period last year.
Prices also saw a dramatic increase with the average selling price of a home in the region rising 11 per cent from 2013 to $583,697. After hovering below the million dollar mark for some time, detached houses in Toronto-proper edged into the seven-figure range: the average price rose 19.2 per cent to $1,012,172.
“The overall average price increase was driven by single-detached, semi-detached and townhouse sales in the City of Toronto. There was a substantial increase in higher-end home sales this year compared to last,” said Jason Mercer, TREB’s Senior Manager of Market Analysis, in the news release.
“This time last year, many would-be home buyers and sellers were still on the sidelines due to changes in federal mortgage lending guidelines, including those guideline changes that removed the government guarantee on mortgage insurance on home sales over one million dollars. However, many of these households have subsequently adjusted to the lending guideline changes and have recently purchased a home.”
It looks like pent up demand, the scarcity of low-rise listings and the recent lowering of mortgage rates has unleashed a flurry of activity in the resale housing market. If April is already measuring double-digit spikes in sales and prices, we can only wonder whether the sales surge will continue into May, typically the busiest month of the year for real estate transactions, and whether the lofty average price for detached Toronto properties will remain above $1 million.
Here’s a breakdown of the biggest gainers for the first half of April:
- Unsurprisingly, detached houses in Toronto-proper also saw the biggest spike in sales, rising by 19.4 per cent over 2013.
- Interestingly, condos in the 905 tied Toronto detached houses for first; they also recorded a 19.4 per cent spike in sales in the first half of April.
- Semi-detached properties in the 905 measured a 16.2 per cent increase.
- The most affordable type of low-rising housing in the 416 measured the biggest price increase, rising by 19.3 per cent to $486,445.
- It was closely followed by the least affordable property type in the GTA: as previously mentioned, detached houses in Toronto-proper rose by 19.2 per cent to $1,012,172
- Following the trend of price growth among low-rise homes, semi-detached houses in the 416 also saw a big boost, rising by 15.8 per cent to $697,580.
For more information check out the table below: