If the first four months of 2015 are any indication, you should expect a very active real estate market for at least the next several months. GTA real estate sales set a new record in April as rock-bottom mortgage interest rates encouraged more buyers to make a move. Sales were up 17% compared to April 2014.
Prices were up by 10% overall. The Toronto Real Estate Board (TREB) annouced a greater share of high-priced homes changed hands than last year, driving up average prices. Detached home prices in the City of Toronto were up by nearly 14%, to an average of $1,056,114. The median price for all GTA home types, including condos, was $539,000.
There were 10.1% fewer homes on the market than last year, which contributed to bidding wars across the GTA. In April, listings spent an average of 20 days on the market and sold for 100% of the listed price.
"Demand for ownership housing was very high relative to the number of homes available for sale in April" says TREB's senior analyst, Jason Mercer. "This situation is not expected to change markedly as we move through the remainer 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."
Several different forecasters - many from outside of Canada - have declared the market "overvalued" but all these forecasts are based on different variables and economists can't seem to agree on an accurate formula to measure the market.
Meanwhile, Toronto's population continues to grow and the economy continues to improve thanks to lower energy prices, a more competitive Canadian dollar that helps manufacturers and exporters, and brighter employment prospects.