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Greater Toronto Realtors reported 10,850 sales through the MLS in May 2012. The number of transactions represented an 11.0% increase compared to May 2011. The strongest sales growth was reported in the single-detached market segment in the 905 region where transactions were up by 13.0% compared to a year ago.
New listings, at 19,177, were up by a whopping 20.2% compared to May 2011.
“Sales growth in the ‘905’ area code was stronger than growth in the City of Toronto across all major home types. While lower average prices are certainly one factor that has contributed to this trend, recent polling also suggests that the City of Toronto’s land transfer tax has also prompted many households to look outside of the City for their ownership housing needs,” said Toronto Real Estate Board President Richard Silver .
With market conditions remaining tight in the GTA, the average selling price continued to grow in May up by 6.5% from the same time last year to $516,787. Price growth continued to be driven by the low-rise market segment.
“Strong competition between buyers seeking to purchase low-rise home types drove strong price growth in May. However, if new listings continue to grow at the pace they did in May for the remainder of 2012, the annual rate of price growth should begin to moderate on a sustained basis,” said the Toronto Real Estate Board’s Senior Manager of Marker Analysis Jason Mercer. ”
“TREB’s baseline forecast for 2012 is for an average price of $485,000, representing a more moderate 4.0% annual rate of price growth. This baseline view is subject to a heightened degree of risk given the uncertain global economic outlook,” continued Mercer.
Sales of Toronto ( 416 area code) condominium apartments increased by 5.0% from May 2011. The average price of a Toronto condo increased by 4.0% from the same time last year.
Condominium apartments accounted for 21.5% of total sales in the the GTA for May 2012 while detached homes accounted for 49.3% of the total sales.
Other notable statistics include the average days on the market for May at 21 days . Active listings were 20,462 in May 2012-up 10.0% from May 2011. The sales-to-listings ratio for May was 53.0% which is classified as a STRONG seller’s market . A ratio from 24%-28% is considered a balanced market.
Sellers are looking for market value for their property . I prepare a comparative market analysis (CMA) for all of my Buyer clients prior to submitting an offer to determine the property’s market value range.
Real estate is very neighbourhood specific and even very street specific in some areas. The numbers as reported above are GTA averages. Results in one neighbourhood or on one street do not indicate that all other neighbourhoods or streets are experiencing the same results. We are still seeing multiple offers in some areas for the best homes.
Please contact me direct at 416-520-6746 or by email, David@TorontoRealEstate.ca