TREB Releases Promising March Figures for the GTA

According to the March figures just released for the GTA, March 2011 was the second strongest March on record, with 9,262 sales recorded; a number that is only 11% lower than the records broken last March.

“The strong home sales reported in March and throughout the first quarter of 2011 have been based on a solid affordability picture and improving economic conditions in the GTA and country-wide,” said Toronto Real Estate Board (TREB) President Bill Johnston.

Looking at average selling prices, March 2011 saw prices go up 5% year over year to $456,147. Condos and semi-detached homes saw the greatest increase in price, both rising by 7%.

A general tightening of the market itself contributed to the appreciations in value. “Market conditions were tighter in March compared to last year. With more competition between buyers, we have seen a strong but sustainable rate of price growth,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.

“The spring market, in particular the months of March and April, is an ideal time for home owners to list their properties for sale. It is in these critical months where the momentum of demand will cycle to its highest, while the supply of good housing stock will be at its lowest."

"Buyers active since the autumn,who, for whatever reasons, did not secure a purchase become fully keen house hunters at the beginning of the New Year. Already suffering from buyer’s fatigue from several months of searching, these buyers become highly motivated. The problem for them is not their lack of motivation, but the limited supply of property.”

As the spring, and the busy season continues, the question remains- will this uptick in sales, and steady price appreciation continue?

Based on good old fashioned, supply and demand- regardless of what else is going on. “I'm optimistic for Toronto's downtown freehold housing market. In fact, I'm confident enough to predict the ongoing lack of supply will outstrip the burgeoning demand for all of 2011, regardless of the economic climate.”