February 2012- Tight Market Pushes the Average Price above $500K

Greater Toronto REALTORS® reported 7,032 sales in February
2012 – up 16 per cent compared to February 2011. New listings were also up over thesame period, but by a lesser 11 per cent to 12,684. It is important to note that 2012 is a leap year, with one more day in February. Over the first 28 days of February, sales and

new listings were up by ten per cent and six per cent respectively.
“With slightly more than two months of inventory in the Toronto Real Estate Board
(TREB) market area, on average, it is not surprising that competition between buyers has
exerted very strong upward pressure on the average selling price. Price growth will
continue to be very strong until the market becomes better supplied,” said Toronto Real
Estate Board President Richard Silver.
“It is important to note that both buyers and sellers are aware of current market
conditions. This is evidenced by the fact that homes sold, on average, for 99 per cent of
the asking price in February,” continued Silver.
The average selling price in the TREB market area was $502,508 in February – up 11 per
cent compared to February 2011. The Composite MLS® Home Price Index for TREB, which
provides a less volatile measure of price growth compared to the average price, was up by
7.3 per cent compared February 2011.
“If tight market conditions continue to result in higher than expected price growth as we
move into the spring, expectations for 2012 as a whole will have to be revised upwards,”

said Jason Mercer, TREB’s Senior Manager of Market Analysis. “While price growth
remains strong, the average selling price remains affordable from a mortgage lending
perspective for a household earning the average income in the GTA.”


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