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Welcome to RockyCerone.com, your source for Toronto and Vaughan Real Estate.
The first quarter of the year has gone by extremely quickly and the real estate market is booming. Multiple offers are prevalent all over the GTA as a result of BMO's economical offer of 2.99% interest-5 year and 2.99%-4 year from several other banks. In comparison to March 2011 MLS has hosted 9,690 sales transactions this month, an approximate 8% increase. The average selling price in March was just over $500,000, approximately $50,000 higher than March 2011. This unprecedented 10% increase in average selling price from one year ago can be heavily attributed to the promotional mortgage rates discussed above. New Listings and active listings are up by 7.1% and 2.2% respectively. This shows how the markets inventory is strengthening providing buyers more options. Shouldn't average selling price fall with the increase of inventory on the market? This is absolutely correct, however, the number of active buyers are still outnumbering the amount of quality properties that are listed on the market. This is testament to the strength of the real estate market in the GTA right now for both buyers an sellers.
Here is what TREB’s President and Senior Manager of Market Analysis had to say: “The GTA resale market has not suffered from a lack of willing buyers this year. Buyers have been spurred on by the positive affordability picture brought about by low mortgage rates,” said Toronto Real Estate Board President Richard Silver.
“The challenge has been a lack of inventory. Many listings have attracted multiple interested buyers. Strong competition has led to annual rates of price growth well above the long-term average.” “The number of new listings was up last month in comparison to March 2011. However, based on the historic relationship between price and listings, the GTA resale market should be better supplied. If competition between buyers remains as strong as it is right now, we will almost certainly see an average selling price above $500,000 for 2012 as a whole,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.
As you can see, major banks have made properties more affordable which has infused strength in the GTA's real estate market. It has been equally spread across the board in terms of sellers getting value for their homes and buyers having the ability to comfortably budget their mortgage payments. Although interest rates have increased within the past 2 weeks, they are still affordable to the average buyer. As mentioned in past market updates, until we see a drastic increase in interest rates or a flooding of listings in the market we should continue to see statistical increases in the real estate market within the GTA.
Based on historical statistics, the spring season tends to welcome a greater amount of inventory which attracts an influx of prospective buyers. If you are considering selling, we need to sit down and discuss what is needed in order to distinguish your home from comparable on the market. If you are a prospective spring buyer, lets find your future home and attain the best value for your money.
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