Toronto real estate market update May 2012The doom and gloom news reports don’t seem to be scaring off Torontonians, at least not according to the mid-month market report from the Toronto Real Estate Board:

  • Sales up 14.5 % (with the strongest growth in the condo sector)
  • New listings up 13%
  • Average selling price: $517, 242 – up 6% vs. last year
  • In the 416: average selling price $572,159 vs. $547,659 a year ago
  • Toronto Real Estate Board continues to expect to see tight market conditions for the balance of 2012

So how do these stats make us feel (other than a bit bored)?

  • We predicted the increase in listings (Click here to read our Hmmm…Domething Feels Different blog) – this could be attributed to the fact that the seasonal fluctuations in the market seem about about a month ahead of last year
  • Price growth was higher in the 905 than in the 416 – people like the burbs??
  • The year-over-year price increases, while still high, seem to be gently declining – which is good, given double-digit increases aren’t fun for anyone (except the Seller who is selling in Toronto and moving to the US)
So it seems that the invisible hand (the theory that the market self regulates itself) is doing it’s job. But we still think interest rates will rise in the fall – let’s just hope that they don’t cap mortgage amortization at 25 years.

 

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