Tight Market Drives Double-Digit Price Growth

TORONTO, April 4, 2012 Greater Toronto REALTORS® reported 9,690 sales
through the TorontoMLS system in March 2012. This result was up by almost
eight per cent in comparison to the 8,986 deals reported during the same period
in 2011.
“The GTA resale market has not suffered from a lack of willing buyers this year.
Buyers have been spurred on by the positive affordability picture brought about
by low mortgage rates,” said Toronto Real Estate Board President Richard Silver.
“The challenge has been a lack of inventory. Many listings have attracted multiple
interested buyers. Strong competition has led to annual rates of price growth well
above the long-term average.”
The average selling price in the GTA was $501,614 in March – up by 10 per cent in
comparison to March 2011.
“The number of new listings was up last month in comparison to March 2011.
However, based on the historic relationship between price and listings, the GTA
resale market should be better supplied. If competition between buyers remains
as strong as it is right now, we will almost certainly see an average selling price
above $500,000 for 2012 as a whole,” said Jason Mercer, TREB’s Senior Manager
of Market Analysis