It's official: this spring market has set a new Toronto real estate record. Year over year sales in April 2015 were up a spectacular, record-setting 17%; new listings were also up, but only by 5%, which means that we're seeing one of the tightest - and one of the strongest - real estate markets in the city's history. Also record-setting was the year-over-year average price increase of 10%.
Anyone who had doubts about the health of Toronto's condo market should also be heartened by this month's numbers: condos outpaced semi-detached homes in sales, with a year-over-year increase of 16.1%, and showed a very respectable above-inflation average price increase of 5.8%.
Of particular note this month: although the most buyer competition happens around the midpoint of the market, for detached and semi-detached low-rise homes priced around or a little bit under a million dollars, the Toronto luxury real estate market is also incredibly strong. The fact that average price growth outpaced the MLA Home Price Index (10% vs. 8.4%) suggests that a larger proportion of high-end homes changed hands. This is borne out by the Financial Post's report that Toronto has the hottest luxury real estate market in the entire world.
“Demand for ownership housing was very high relative to the number of homes available for sale in April. This situation is not expected to change markedly as we move through the remainder of 2015. Until we experience a sustained period in which listings grow at a faster pace than sales, annual rates of home price growth will remain strong,” said Jason Mercer, TREB’s Director of Market Analysis.