President’s Toronto SUN Column: Long-Term Outlook For Real Estate Remains Positive
Posted by: Toronto Real Estate Admin / Category: Toronto RealtorTREB President’s Column as it appears every Friday in the Toronto Sun’s Resale Homes and Condos section.
April 12, 2013 –
Sales through the TorontoMLS system covering the Greater Toronto Area were down 17 per cent year-over-year in March with 7,765 transactions compared to 9,385 in March 2012. It is important to note, however, that unlike last year, this March included a statutory holiday.
March also marked the end of the first quarter. There were 17,678 sales reported during the first three months of the year – down 14 per cent compared to last year.
Sales activity was marginally stronger in the areas surrounding the City of Toronto, with 4,874 transactions reported in the ‘905’/’705’ regions within the TREB market area, representing a year-over-year decrease of nearly 16 per cent. The City of Toronto’s 2,891 sales represented a decline of 19 per cent compared to a year ago.
As has been the case over the better part of the last year, the number of active listings at the end of the month have been up compared to the previous year. Buyers have benefitted from more choice, which helps explain why the average number of days a home remained on the market before selling has edged up. In March, the average days on market was 24 days versus 21 days a year ago. With this said, active listings continue to trend below levels experienced in the pre-recession period.
On a year-over-year basis, the average price of a GTA home sold through TorontoMLS increased by nearly four per cent in March to $519,879. Gains were slightly better in the City’s surrounding area with average price climbing by more than four per cent to $493,238. The City of Toronto’s average price of $564,793 represented an increase of nearly three per cent compared to March 2012.
The average TorontoMLS home price was up three per cent annually compared to the first quarter of 2012.
Townhouse prices in the City of Toronto saw the most significant year-over-year price gains in March, climbing by nearly eight per cent. Semi-detached homes in the City of Toronto followed, growing by nearly seven per cent. Detached homes in the City’s surrounding area also showed healthy price gains, increasing by five per cent compared to a year ago.
One key factor that may prompt buyers to enter the market as we move further into spring is the affordability that five-year fixed rate mortgages offer, at approximately three per cent. Less promising though, was the March unemployment rate in Toronto, which remained stalled last month at 8.4 per cent, identical to that of the previous month.
The long-term picture for our City’s real estate market, however, remains positive, supported by the Greater Toronto Area’s favourable reputation. Recently, three GTA municipalities – Newmarket, Oakville and Burlington – ranked within the top ten of MoneySense magazine’s annual “Best Places to Live in Canada” report, which examines factors that contribute to quality of life including employment, incomes, housing affordability, weather, crime rates and access to medical treatment. In fact, eight GTA municipalities, including the City of Toronto, ranked within the top 30 on the report’s list of 200 cities.
To explore all of the housing options available to you throughout the GTA, talk to a Greater Toronto REALTOR® and visit www.ToronoRealEstateBoard.com where you’ll find market updates, open house listings, information on government programs and more.
Ann Hannah is President of the Toronto Real Estate Board,
a professional association that represents 36,000 REALTORS®
in the Greater Toronto Area.
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Article source: http://www.torontorealestateboard.com/market_news/president_columns/pres_sun_col/index.htm
Tags: Toronto Realtor