Kayaks by Rick Harris
A new report from Greater Toronto Area REALTORS® reports 4,375 transactions in total through the TorontoMLS system in January 2013. This number represents a small decline compared to the 4,432 transactions reported in January 2012.
Toronto Market Report January Infographic
The average price in the GTA rose to $482,648 from last year’s average of $462,655 — a 4.3 per cent increase. Looking at the average price in the City of Toronto, we get $507,859, which is a 3.3 per cent increase compared to the $499,045 of January 2011.
Toronto Real Estate Board (TREB) president Ann Hannah explains,
“The January sales figures represent a good start to 2013. While the number of transactions was down slightly compared to last year, the rate of decline was much less than what was experienced in the second half of 2012… This suggests that some buyers, who put their decision to purchase on hold last year due to stricter mortgage lending guidelines, are once again becoming active in the market.”
Condos Still Falling
It sure is interesting that sales increased for many home types in the GTA regions surrounding the City of Toronto. This would be due to the additional upfront land transfer tax in the City of Toronto. Talking about home types, detached houses received a small 0.7 per cent increase compared to 2012 (but a sharp 7.6 per cent decline in the City of Toronto!). Detached houses are followed by semi-detached houses. Sales fell by 1.1 per cent in the GTA, while in the City of Toronto the fall was more distinct, at 5.2 per cent.
Mansion by Michael Gil
The next housing type with the worst sales compared to 2012 is townhouses, which fell by 2.3 per cent in the GTA and a sharp 11.2 per cent in the City of Toronto. And last but not least, condos. Condos are still spiralling down in price. In the GTA they suffered with just 1,051 sales in total, which is a decrease of 5.1 per cent. Looking at the City of Toronto, the total sales of condos was 730, which means 4.5 per cent fall compared to last year.
The average selling price for January 2013 was $482,648 (a 4.3 per cent increase compared to the $462,655 in January 2012). The MLS® Home Price Index (HPI) Composite Benchmark price went up by 3.8 per cent over the same period.
And what about listings, you say? Well, for the Greater Toronto Area the total number of active listings went up to 14,231, which is an increase of a whopping 15.8 per cent. You can compare this to the City of Toronto itself, where the total number of active listings was 5,736 — an 11.7 per cent increase.
Positive Outlook for 2013
“There will be enough competition between buyers in the marketplace to prompt continued growth in home prices in 2013. Expect annual average price growth in the three to five per cent range this year,”
announced Jason Mercer, TREB’s senior manager of market analysis.
So according to Mr. Mercer, we can hope to see a clash of competitors in the near future. The question is whether this situation will be sustainable longterm.