GTA Real Estate Sales Soar, Toronto Luxury Real Estate Market Hottest in the World
Peak selling season is off to a great start in Toronto, and judging by April’s figures, we’re in for one hot summer. In an announcement made last week by Toronto Real Estate Board President Paul Etherington, GTA REALTORS® reported 11,303 sales through Toronto MLS®. This is an astounding 17 per cent increase in comparison to the same time last year. New listings were up five per cent—a modest number, however, still an increase compared to last year.
The overall average selling price of a GTA home was $635,932, up 10 percent in a year-over-year comparison. The MLS® Home Price Index (HPI) composite benchmark, which estimates the price of a benchmark home with the same attributes from one period to the next, was up by 8.4 per cent over the same period—although the HPI saw a healthy increase, it did not leep up with the growth of the overall average selling price.
The margin supports the recent buzz regarding Toronto as the “Hottest Luxury Market” with a significant surge in higher-end houses being sold. Luxury homes in Toronto acquire their name when their list price exceeds $3 million USD.
The demand for low-rise homes in the city is not being met, withrare new listings being snatched up by eager homebuyers. According said Jason Mercer, TREB’s Director of Market Analysis “Demand for ownership housing was very high relative to the number of homes available for sale in April. This situation is not expected to change markedly as we move through the remainder 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,”
There were increases in the condominium market as well, which unlike detached homes in the GTA, are more accessible to buyers. The high activity in the Toronto Real Estate Market, as well as in the GTA is proof that people still consider real estate as a dependable, long-term investment.
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