GTA home prices rise as sales fall: TREB

GTA home prices rise as sales fall: TREB

While the number of transactions declined compared to last year, home prices in the Greater Toronto Area actually increased slightly.

The Toronto Real Estate Board (TREB) reported 3,084 sales during the first two weeks of February 2011 – a 13 per cent decrease compared to the first two weeks of February 2010.

“We are on pace for a strong sales result in February, but transactions will come in lower than the record result reported last February. Sales remain strong because the GTA resale market contains a diversity of housing types catering to a wide array of home ownership needs,” said TREB president Bill Johnston.

The average price for transactions during the first 14 days of February was $451,257, representing a five per cent increase compared to the first two weeks of February 2010.

“Average selling price growth for existing homes is expected to range between three and five per cent this year. Tighter market conditions over the last four months have pushed price growth to the top end of this range,” said Jason Mercer, TREB’s senior manager of market analysis.

Deepak Bansal, mortgage broker with The Mortgage Practice (Verico) in Mississauga, ON said February is usually one of the slowest months for purchase transactions, but this year has been the busiest one for him in nearly two years.

“From what I am seeing, homes are selling quickly in my area. February has been a busy month for me, primarily with mortgage closings for resale home purchases. With recent news of mortgage interest rates on the rise, I feel people are rushing to purchase while rates are low.”

Sales of detached homes in the GTA fell 17 per cent, while average prices climbed seven per cent. Semi-detached home sales dropped by 11 per cent, with prices going up by six per cent, and condo sales saw a drop of five per cent and a price increase of five per cent. Townhomes sales fell 16 per cent, while the average price was unchanged from a year ago.

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