The Toronto real estate market has ended 2013 with a bang: price growth of 5.2% over 2012, with a year-over-year price increase for the month of December of nearly 9%. We're steaming into 2014 full steam ahead, with the average price for a home in Toronto passing the half-million mark at $523,036.
As was the case last month, new listings are down while sales are up, leading to a supply-demand imbalance that puts upward pressure on prices. This is particularly apparent in the low-rise market, where detached, semi-detached and townhome residences each post an average prive increase of between 11 and 12% year-over-year for December.
Although average prices for condos lag behind at 6%, this is still a remarkably good showing, and one that suggests that the condo market, far from crashing, is actually recovering and stabilizing from its more volatile pricing pattern in mid-2013.
Overall, “the average selling price will be up again in 2014 and by more than the rate of inflation. The seller’s market conditions that drove price growth in the second half of 2013 will remain in place in many parts of the GTA. Some neighbourhoods, especially those characterized by low-rise home types like singles, semis and townhomes, will continue to have less than two months of inventory,” said Jason Mercer, TREB’s Senior Manager of Market Analysis in this month’s MarketWatch.