Home prices in Toronto shot up 10.1% in April, compared to a year ago, according to the Toronto Real Estate Board (TREB). The average selling price was $577,898.
But this didn’t stop buyers. In fact, home sales increased 1.8% during this period.
“April marked the beginning of the spring market, during which time we generally see the highest monthly sales totals in a given year,” explains TREB president Dianne Usher. “Despite the persistent shortage of listings, a substantial number of residents were able to come to terms on a home that met their needs.”
But she notes had it not been for a lack of supply, sale levels would’ve been even higher.
“A number of factors underlie the constrained supply of listings,” says Usher. “Studies and polling suggest the additional upfront land transfer tax in the City of Toronto has prompted some households to stay put and renovate rather than list their home and move.”
Jason Mercer, TREB’s senior manager of market analysis, adds, “Price growth as a whole was driven by the single-detached, semi-detached and townhouse market segments. So far this year, there has been no relief on the listings front for these home types in many neighbourhoods. Until we see a marked and sustained increase in listings, we should expect to see the annual rate of price growth above the long-term norm.”