Image: VV Nincic/Flickr
March traditionally marks the point in the year when home prices increase at a faster clip and real estate market temperatures turn from tepid in winter to sizzling hot for spring.
According to the latest figures from the Toronto Real Estate Board (TREB) however, sizzling may be an understatement. The average price of a GTA property climbed a staggering 33.2 per cent in March to $916,567 for all home types.
In a drastic shift from the norm, price growth for both detached family houses and condominium apartments across Toronto-proper and its surrounding suburbs were recorded at nearly the same pace.
Average sold price of a detached home across the entire GTA clocked in at $1,214,222, up 33.4 per cent compared to the same time last year. Condo apartment prices spiked 33.1 per cent to $518,879.
“Strong competition between buyers continued to cause high levels of price growth in all major market segments,” reported TREB in an official statement. Further noting “similar annual rates of growth [were seen] in the low-rise and condominium apartment segments.”
TREB also found homes were plucked up by buyers in record time, as average days on market was reportedly under two weeks at just 10 days.
March 2017 Toronto Housing Market
To find out how home prices fared in your neighbourhood, type out your area and home type in the comments section below and we’ll provide you with the numbers.*
Supply remains to be the main culprit behind the huge price hikes, as a large pool of buyers continued to compete over an ever dwindling supply of listings. According to the numbers, active listings (a.k.a homes up for sale) dipped 35.2 per cent last month when compared to March 2016.
In-tune with the hot buying season, sales climbed 17.7 per cent for all home types, with the condo market specifically experiencing an even more drastic 23.9 per cent jump.
In response to speculation around potential (yet not acted upon) government intervention in the form of a foreign buyer tax, TREB stated the following: “It has been encouraging to see that policymakers have not implemented any knee-jerk policies regarding the GTA housing market.”
In the past, TREB has voiced a foreign buyer tax would not address soaring prices, as it attempts to lessen demand; ignoring the supply end of the equation while also resulting in unintended consequences that will reverberate through the economy.
In recent developments, Toronto Mayor John Tory voiced the city is eyeing a tax targeting unoccupied homes which sit empty for speculative reasons. Vancouver implemented a similar tax in January 2017, which charges owners who leave a residence vacant a fee equivalent to one per cent of their property’s value.
Want to get started on your home buying and selling journey? Give us a call at 416.800.0812 and check out TheRedPin’s listings page
*Based on overall neighbourhood prices – not equivalent to a home evaluation.