There was an 85 per cent increase in numbers of new condominiums sold compared to last year, according to real estate market research firm Urbanation, and a 1.8 per cent increase in sales of all real estate.
But homeowners have not rushed to list their properties after the slow sales in March and April. The Toronto Real Estate Board reports a shortage of detached, semi-detached and townhouse properties in Toronto and surrounding regions is constraining sales.
“April marked the beginning of the spring market, during which time we generally see the highest monthly sales totals in a given year,” said TREB president Dianne Usher.
Despite the persistent shortage of listings, a substantial number of GTA residents were able to come to terms on a home that met their needs. However, sales levels would have been higher, but for the lack of supply,” she added.
A shortage of supply is helping to pushing up prices for those kinds of properties. The average price of detached homes sold in the 416 (Toronto) area code is $965,670, a 13 per cent increase over a year ago. The average price for a detached home in the 905 is $645,179, up 9.6 per cent.
TREB says Toronto’s land transfer tax is a factor in the number of homeowners who prefer to stay put and renovate rather than sell and move to a bigger home.
It also says the deep recession also has discouraged home sales as people do not have the cash needed to trade up.
Urbanation says 5,140 new condos were sold in April and 3,482 used units changed hands, by listings were 13 per cent lower than last year. The average price of units was 4.6 per cent higher, according to TREB.