One of Canada’s hottest housing markets reported another year-over-year sales and price increase in May.
“We are now at the peak of the spring market when we generally see the greatest number of sales and the highest average selling prices,” Dianne Usher, president of the Toronto Real Estate Board said in an official release. “Based on the May statistics, buyers have been more active this spring compared to last year.”
The average price in Toronto shot up by $53,466 to $652,681 year-over-year in May. Meanwhile, last month saw 296 more sales than 2014 than 2013.
However, due to record-low interest rates, Torontonians – like many others in Canada -- are still managing their monthly payments, according to TREB.
According to a recent Scotiabank study, more than two-thirds of Canadians have taken steps to pay their mortgages off quicker.
“Despite strong price growth so far in 2014, many households remain comfortable with the monthly mortgage payments associated with the purchase of a home, as borrowing costs have remained at or near record lows over the past few months,” Usher said.
However, due to the limited supply of housing options in Toronto, bidding wars have driven prices up by tens of thousands of dollars in many cases.
“The listings situation in the GTA did not improve this past May. With listings down and sales up compared to last year, competition between buyers increased,” Jason Mercer The result was price growth well-above the rate of inflation, especially for singles, semis and townhomes.”
As for Condos, TREB noted strong condo price increases, despite many pundits believing the market is over-valued.
“It is also important to point out that even though the condo apartment market segment remains comparatively well-supplied, as new project completions have generally led to an uptick in listings, we have seen enough buyer interest to prompt strong condo price growth as well,” Mercer said.