Record Home Sales in April
Greater Toronto Realtors reported 12,085 residential sales through the Toronto MLS system in April 2016. The number of transactions in April represented a 7.4% increase compared to 11,254 transactions reported in April 2015. Condo apartments in the GTA had the highest sales increase year-over-year.
The number of new listings reported in April was down by 9.9% compared to the same period in 2015. Active listings were 12,554 in April-down 26.9% from April 2015.
For the TREB market area as a whole, annual sales growth was experienced for all major home types except semi-detached houses. In the City of Toronto, sales were down for detached and semi-detached houses as well as townhouses on a year-over-year basis. This dip in sales in the “416” area code was due to a lack of low-rise listings. Many would-be buyers were not able to find a home that met their needs.
“While April’s sales result represented a new record for sales, that number could have been even higher if we had benefitted from more supply. In the City of Toronto in particular, some households have chosen not to list their home for sale because of the second substantial land transfer tax and associated administration fee. The lack of available inventory, coupled with record sales, continued to translate into robust annual rates of price growth” said Mark McLean, TREB’s President.
The average price in April was up by 16.2% from the same time last year to $739,082. Detached homes in the GTA led the way in terms of an average price increase at 18.9% compared to the same time last year.
“As we move into the busiest time of the year, in terms of sales volume, strong competition between buyers will continue to push home prices higher. A greater supply of listings would certainly be welcome, but we would need to see a number of consecutive months in which listings growth outpaces sales growth before market conditions become more balanced,” said Jason Mercer, TREB’s Director of Market Analysis.
Sales of Toronto (416 area code) condominium apartments increased by 17.4% in April 2016. The average selling price of a Toronto condo increased by 7.0% in April 2016 from the same time last year to $436,545.
Condominium apartments accounted for 23.2% of total sales in the GTA for April 2016 while detached homes accounted for 50.2% of the total sales.
Other notable statistics include the average days on the market for April at 15 days, down 16.7%. The sales-to-listings ratio for April 2016 was 96.0% which is classified as a very big 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, building specific and even very street specific in some areas. The numbers as reported above are GTA averages. Results in one neighbourhood , on one street or in one building do not indicate that all other neighbourhoods, streets or buildings are experiencing the same results. We are still seeing multiple offers in some areas for the best homes and condos.
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