The Toronto real estate market has been extremely busy, due to an unusually low number of homes available for sale which has led to strong competition between buyers, bidding wars and price increases. In fact the average price on the Toronto Real Estate Board rose to $502,508 in February, breaking the $500,000 mark for the first time.
Now do not panic! Its just one month, and it is very unusual market conditions. The market is strong, prices will continue to increase, but certainly not at the same levels as February. As we head into spring and more homes come on the market, some of the pressure on prices will be relieved.
February saw the sale of 7,032 single homes, an 11% price increase over February 2011. After two months, the average price of a home in the GTA stands at $487,254.
While the expensive homes get the publicity, it’s important to realize that many homes are still affordably priced. Of the 7,032 homes sold in February;
4,629 or 66% were under $500,000
3,274 or 47% were under $400,000
1,594 or 23% were under $300,000.
In fact only 6% or 407 homes sold in February were over $1,000,000!
Combined with low interest rates, houses remain affordable for a household earning the average income in the GTA. It is still a great time to buy, and I strongly encourage my clients to buy investment properties as Canada and Toronto continue to grow due to immigration and a strong economy.
Have a great March!