The Etobicoke and Toronto real estate market has been going strong since the start of the year. The number of properties now on the market is up sharply from earlier in the year and we have shifted from a sellers-market into the beginning of a balanced-market. Bank of Canada is widely expected to raise the overnight rate and in turn signal a rise in borrowing rates generally. Banks have already made upward adjustments in their mortgage rates. The Greek financial crisis may cause the Bank of Canada to defer this adjustment, or keep it to a very modest increase.
Here are the official comments from the Toronto Real Estate Board:
May 5, 2010 — Greater Toronto REALTORS® reported 10,898 sales through the Multiple Listing Service® (MLS®) in April, representing a 34 per cent increase compared to April 2009. There were also 20,683 new listings in April – a 59 per cent annual increase. Both the sales and new listings results amounted to new records for the month of April under the current Toronto Real Estate Board (TREB) boundaries.
“The GTA resale market is functioning properly. Sales were high as buyers continued to take advantage of affordable home ownership opportunities. Listings grew as home owners reacted to strong sales and price growth,” said Toronto Real Estate Board President Tom Lebour. “More balanced market conditions will result in sustainable rates of annual price growth in the second half of 2010.”
The average price for April transactions was $437,600 – up 13 per cent compared to the average of $385,641 recorded in April 2009.
“Home sales continue to be driven by many different segments of the market, with sales growth for all major home types in both the City of Toronto and surrounding 905 regions,” said Jason Mercer, TREB’s Senior Manager of Market Analysis. “Home sales will remain strong in the second half of 2010, but will slip from the current record pace as borrowing costs rise.”