TORONTO, April 17, 2014 — Toronto Real Estate Board President Dianne Usher announced that the spring market started off on a robust note in the Greater Toronto Area, with a 10.8 percent year-over-year sales increase reported by Greater Toronto REALTORS in the first 14 days of April. Sales through the TorontoMLS system over this period amounted to 4,541 units.
"The strong increase in sales talks to the indisputable fact that home ownership remains cheap in the GTA. A household earning the average income in the GTA can easily afford a mortgage on an average priced home," said Ms. Usher. Usher.
The average selling price for April mid-month sales was $583,697, representing a yearly increase of 11 per cent. This increase was due to both tight market conditions and a change in the mixture of homes sold. At month-end, the MLS HPI baseline price will supply more understanding of price growth attributable only to the change in market conditions.
"The overall average price increase was driven by single-detached, semi-detached and townhouse sales in the City of Toronto.
"This time last year, many would-be house buyers and sellers were still on the sidelines thanks to changes in Fed mortgage lending guidelines, including those guiding principle changes that took away the government guarantee on mortgage insurance on home sales over 1,000,000 dollars. There had been a substantial increase in higher-end home sales this year compared against last," asserted Jason Mercer, TREB’s Senior Boss of Market Analysis. Nonetheless many of those households have subsequently adjusted to the lending guideline changes and have lately got a home," continued Mercer.