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Real Estate Cheat Sheet: is Toronto’s housing market heating up again?

House-hunting weather? (Image: ilkerender)

January often sees a lull in the sales of houses and condos, with buyers less willing to traipse from viewing to viewing in the chilly weather. However, the latest monthly stats from the Toronto Real Estate Board—and new reports of bidding wars—suggest the new year has brought renewed vigour to the city’s lagging housing market. We unpack the latest intel below.

• In January, 4,375 GTA homes changed hands through MLS, a slight (1.3 per cent) decrease compared to January 2012. Realtors see that number as encouraging, since the GTA has seen double-digit decreases for the last few months. TREB president Ann Hannah said the statistics suggest buyers who were spooked by the mortgage regulations introduced over the summer are now ready to enter the market—a theory supported by mortgage broker reports of a surge in applications from prospective homebuyers since Christmas.

• TREB also reports that prices were up 4.3 per cent in January, bringing the average price of a GTA home to $482,648. (Within the city of Toronto, the average price of a home was $507,859.) The Toronto Star reports that first-time buyers are helping fuel demand, citing a two-bedroom home in East York that attracted eight competing offers and sold for $56,000 over the $469,000 asking price. A TREB analyst predicts prices will grow between three and five per cent this year.

• Despite the rosy numbers for houses, the condo resale market continues to struggle. The number of condo sales last month fell by 5.1 per cent compared to a year before, while the average price of a GTA condo fell by 1.2 per cent.

GTA Market Watch January 2013 [TREB]
• First-time buyers are back after 2012 slump in sales [Toronto Star]

  • http://www.facebook.com/profile.php?id=554655429 Dan Iel

    Actually the average price is still down nearly 7% from the spring highs….combined with a YOY decrease in sales, I would hardly call that “heating up”.

  • http://www.facebook.com/kerwin.wong.75 Kerwin Wong

    I believe the report shows avg price is still up year to year (except condos). There IS a drop in volume of sales across the housing types.
    However, I tend to agree heating up is a bit of hype … but the market isn’t as cold or depressed as many of us were expecting.

  • Paul

    Its true – lots of buyers abound – that part of the market is fine.

  • http://www.facebook.com/cerar Chris Cerar

    Dan, that happens every year. That’s why they do an apples-to-apples comparison.

  • Earl Finnegan

    Well mine isn’t, my house heating in Toronto went out a bit ago.. I really need to get it repaired.

 

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