Supply challenges lift Toronto home prices

The Toronto Real Estate Board released its mid-April statistics Wednesday, showing that the average price for detached homes, townhouses, and condos were all up 5% from a year earlier. Semi-detached units were up 3%. The average price for the entire GTA was $506,954, up 5% from last year.

Sales were also up 7% in the first two weeks in April compared to the same time a year earlier, totaling 4,557 this time around. But despite all the new condo construction happening in the city, supply is still lagging overall, especially for single family homes, said TREB’s Senior Manager of Market Analysis Jason Mercer.

“Growth in listings has not kept up with growth in sales,” he said. “In the city of Toronto, new listings for low-rise home types during the first half of April were actually down compared to last year,” he said. “This helps explain why some of the tightest market conditions in the GTA can be found within the ‘416’ area code.”

The lack of listings to meet the demand has resulted in strong competition for properties in Toronto this month, said TREB President Richard Silver.

“Strong competition meant that, on average, sellers priced within market value range received offers that matched their asking price within three weeks,” he said.

The largest price gains were not in the 416 area code, however, but in the more affordable 905. Condos in the latter, for example, were up 8% in average price to reach $290,105, compared to 4% in 416 to reach $364,516. Similarly, detached houses in 905 had an average of $569,252 in mid-April, up 7%, while the average of $798,092 in 416 was up 3%.

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